Cramer's Morning Take: Meta 10/31/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. What a busy day. Stack of papers this high, trying to go over everything. I do insist that you read our notes this night, Microsoft. We had the best meta note, and our Starbucks note was fantastic. I speak like that because I think they were fantastic. But we have the bonds interest rates up again, and that gives you a backdrop, plus a couple of ones we're going to talk about that makes things negative today.

Jeff Marks (0:34)

Yeah, you did have PCE. Remember that's the Fed's favorite inflation gauge. I'll call it in line, still trending lower. Jobs report tomorrow may be more impactful. But I do think today in the market, we are seeing weakness in tech. I think a lot of it has to do with the mega caps, the magnificent seven stocks lower. Why don't we just jump right into them? I think, well, starting with meta.

Jim Cramer (0:56)

Okay, so my theory is, you're Mark Zuckerberg, and you're looking at the landscape, and you're seeing ChatGPT, you're seeing that that's got great mindshare. You call up Jensen Wong in video and you say, look, I need all the black wells I can find because I want to do video meta AI. Now meta AI, which didn't really even exist last year, is going to be the number one GPT by the end of the year. He wants to own the consumer space, he will. That's when he can scrub from all the internet, all that he has in Facebook and Insta. He's got the best database in the world. Meta AI is fantastic.

Jeff Marks (1:34)

He certainly made it clear he wants every single chip he can get his hand on. The reason why is because AI is driving positive results. Not only is it increasing engagement, talk about meta AI, that's another product that they have as well, but it's also improving monetization efficiency. That's how you have a quarter where revenue growth was up about 19% and you have just a monster beat on earnings. So why is the stock down? People are worried about the capex because they are spending a lot on chips. Talking 2025, a lot of significant capex growth. He has to.

Jim Cramer (2:07)

Jensen's not going to give him a discount. Everyone's trying to get the black well.

Jeff Marks (2:11)

There's some worrying about the pace of investments, but I think meta has proven, and we saw that certainly last quarter, that those investments are paying off. I think it's just some profit taking. I mean, the stock has been the best of the MAX 7, excluding NVIDIA. Just call it the FAANG stocks. And the revenue guidance is slightly above the midpoint. Maybe people want a better, but they'll beat it.

Jim Cramer (2:38)

Everyone thinks that Apple's going to have a big shortfall. That's, you know, look, I mean, the stock doesn't come in, but everyone thinks that tomorrow's the day you buy meta. You don't buy meta today. Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (3:04)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal or their parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com/investingclubdisclaimer.