Cramer's Morning Take: Meta & Microsoft 7/31/25

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SPEAKER_2 (1:01)

A key July jobs report. Is trade uncertainty impacting the economy and the labor market? What the data could mean for future rate cuts, employment numbers and analysis. Squawk Bucks, tomorrow 8.3 Eastern and streaming on CNBC Plus.

Jim Cramer (1:18)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. I will tell you that a lot of people feel you have to focus on Powell and how he was hawkish yesterday and therefore maybe the cuts are pushed out. Not my focus, but the focus of a lot of people in the business.

Jeff Marks (1:38)

Yeah, I'd much rather focus on the earnings last night from the mega cap tech companies, Meta, Microsoft and how much they are investing in AI through the rest of this year as well as some early thoughts around 2026 We're talking tens of billions of dollars each. I mean, close to 100 billion each.

It's just significant and that has such a massive downstream impact to so many other companies.

Jim Cramer (2:06)

Where they're going is they're spending money on the data center, which means they're spending money on NVIDIA. NVIDIA a little convoluted today because of this Chinese issue, the Trojan Horse, but they're also spending a lot of money on even things like Eaton. I mean, I don't want to lose sight of the fact that some of the winners we have that people aren't thinking about that are data center.

Jeff Marks (2:24)

So, let's go one by one. Let's talk about the Meta quarter because it was magnificent. You did have a really nice revenue acceleration, 21 percent, and beat estimates by 2.7 billion dollars. Just the DPS up 38 percent year over year, a healthy beat, a capex, 17 billion just in this quarter. You have Mark Zuckerberg, the CEO, outlaying his vision for super intelligence. What does that mean? It basically means smarter than humans. He's investing aggressively for that, and he thinks that they have a line of sight into it.

Jim Cramer (3:00)

I want people to understand exactly how significant it is.

Right now, we have the trade deadline in Major League Baseball, and there are some owners who just don't mind paying for anything because they want to win. That's Zuckerberg. He wants to win, so he's paying big money. No one else is doing that yet. I think it's wise because he's building a brain trust that is trying to think of things that we've never thought of.

Jeff Marks (3:24)

Well, you can do it when, again, you have revenues accelerate 21 percent, you have just the AI unlocking, advertising growth, greater efficiency.

Jim Cramer (3:33)

By the way, the new glasses, he did say, even though the revenue is not so big there yet, that's how humans are going to be receiving AI, thinks the glasses are good. The super intelligence worries me because I think that we're going to have people who have a super intelligent profile and ones that don't. If you have super intelligence, how are you going to, you'll win every time.

Jeff Marks (3:54)

We'll have to see in the future. But meanwhile, Q3 revenue had the outlook well ahead of estimates. Full year, they did raise the low end on both CapEx and total expenses, but really not as bad as feared. And I had some fears that maybe you'd see some crazy number because of that hiring spree we talked about, but it was fine and they have the revenues to back it up.

Jim Cramer (4:11)

As you say in your excellent note, this is 26 times earnings. What is that about? How can this not be given a 30 more?

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