Cramer's Morning Take: Tech Earnings 7/26/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Jim Cramer (0:33)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

This was a beat across the board. One of the finest companies, and the market were up. This thing would be up even more.

Jeff Marks (0:48)

Yes, search very strong.

Two quarters in a row of revenue growth acceleration. A lot of retail was one of the strong markets that they pointed out that's dollars moving to the digital advertising space.

YouTube, finally good. Up 4% after two quarters of a decline. Cloud was a beat. Repurchase $15 billion of stock. Sure, CapEx rising to support all those AI initiatives. But I would say of the Magnificent 7, this probably had the lowest bar into the print. Only 20 times earnings.

Jim Cramer (1:17)

Right, gigantic free cash flow. Remember, YouTube does not have a cost of acquisition, which is remarkable.

And the NFL Sunday Ticket was not even mentioned yet, just one brief mention. And that is going to be a huge driver of traffic. Especially with fantasy being a fourth quarter business. You have to watch games to the end.

Jeff Marks (1:34)

They bought that and it's now available for YouTube TV.

Jim Cramer (1:38)

Did you sign up yet? There's a discount.

Jeff Marks (1:40)

I did as soon as I wanted the discount. Yeah, of course. I gotta find a way to watch the Eagles living in New York. What about Ruth Porat transitioning from CFO?

Jim Cramer (1:49)

Ruth is a favorite because she was a cost cutter, but that seems to have evaporated, although this quarter the costs were below. She said they're gonna go up. She'll be working on, she's president, she'll be working on investments. They have a great number of investments that have not really panned out. So I think there's upside there, but we do need a good disciplinarian CFO.

Jeff Marks (2:07)

Yeah, I do wonder if they, whoever they choose to take over, and she's staying with the company, by the way, president, chief investment officer, gonna, I'm sure, have a big role in their AI future, but I do wonder if the new CFO that they do eventually hire, will they be as aggressive with cash, with cutting costs, kind of like what Metta has been over the past year.

Jim Cramer (2:28)

Yes, I don't know. I mean, you've got.

Jeff Marks (2:29)

It's a question.

Jim Cramer (2:30)

It's a great question. It's a good way to transition to another CFO, Amy Hood, who basically took the stock of Microsoft down big, the stock was up two, it then subversed, it's down 14 from there, and I happen to think, as I've been saying on my Twitter account, let the people sell. See, this is, you have to get, when you have a stock like this, this is giant sellers who went out, but are they as informed as our note last night?

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SPEAKER_4 (3:11)

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