Cramer's Morning Take: Meta 8/1/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC investing Club morning meeting. I gotta tell you, I have a kinda queasy feeling about today, and the reason I do is because we have the tenure under four, and that means that people are reacting to these, a company like Wayfair that's not doing that well, company like McDonald's not doing that well. The overall sense that the discretionary category is doing very, very poorly, and I think that's what's controlling the tenure, and I don't wanna see that. I think it's because the Fed didn't cut yesterday.

Jeff Marks (0:37)

No, they did not. They did signal cuts in September, sounds like it is on the table. They're watching inflation data and the job data, and we'll get a jobs number tomorrow as well. But yeah, to get back to, we had a very big move yesterday, especially in the semiconductors, NVIDIA, Broadcom, both were up a double digit percentage. So a big move there, and obviously Meta is the star of what's happening today. Without Meta, it'd be a much different market.

Jim Cramer (1:08)

yes, it would be. Now Meta, one of the things that's very exciting about it, it's the first time I have read about what's going to happen in the future. 25 is a roadmap, 25 and 26, kind of took off the table the idea, well, what are we doing this? And the idea is that right now, if you're an advertiser, you can go to them and they'll tell you where your ad should be. You'll argue and then they'll say, okay, I don't know. But right at this very moment, the advertiser will recognize that Mark has a better view of where the ad should be than you. So you just say, listen, here's my copy, I want this inserted above. Now, he says, next year, you'll just say, look, I want an ad. It'll be better done by them than you.

Jeff Marks (1:45)

Yeah, he's talking about advertisers just giving them their budget and they'll put it to work. It's interesting, last time they reported, the market was really concerned about their spending on AI, but this time they really explained how AI is driving better engagement, recommendations, it's improving the monetization efficiency. yes, so now people are taking their cap back spending and saying, no, they're generating a strong return on this, it's worth it. And that's a big reason why you had such a big revenue number, guidance was strong, earnings were great, and the stock's up almost 9% as a result.

Jim Cramer (2:23)

Yeah, and I think that you're coming with a holistic platform, you're staying on WhatsApp, you're staying on Instagram, you're on threads.

Jeff Marks (2:30)

They called out young adults in the US are using Facebook.

Jim Cramer (2:34)

People have not been able to reach that cohort. He has, by the way, the Ray Bans, I know we joke, but my daughter wears the Ray Bans, they can take pictures everywhere, you can ask the Ray Bans thing, really rather remarkable. So anyway, in phrasing Mark Zuckerberg. Join the CNBC investing Club with Jim Cramer to catch my member exclusive morning minis every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (3:05)

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