Cramer's Morning Take: Tech Stocks 10/25/23

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Jim Cramer (0:33)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting. Frankly, we don't think to buy when the market is bad, but that's what you have to do.

Jeff Marks (0:44)

Yeah, so we'll have a couple of buys after this that we're looking to make stocks with, either they had good read-throughs this earnings season, maybe they're potential catalysts on the horizon, so we'll get more into that later. But you mentioned Alphabet, stock is sinking today. A better than expected quarter on the margin, earnings beating estimates by 10 cents.

Advertising, revenue accelerated, strong search and also YouTube. A lot of attention, though, is in the cloud, where they did miss on revs, they did miss on operating income. Stock has been a big outperformer year to date, heading into earnings, but falling back 8.5 percent. Concerns about expenses as well.

Jim Cramer (1:24)

Yeah, I mean, versus Microsoft, which cut expenses fabulously and cut headcount. Here's what's going on at Alphabet that is bothersome.

When you offer no explanation for what's happening, did Thomas Currian not do a good job in cloud?

What is your plan for the NFL Sunday ticket? Are you trying to broaden that? Will price go up like Apple just announced? We got no answers, many more questions than answers. It was a very poorly run call. And I walked away and said amateur hour. Amateur hour equals sell.

Jeff Marks (2:01)

Yeah, and look, the stock's not exactly expensive.

Jim Cramer (2:05)

No, it's not.

Jeff Marks (2:05)

It's a very reasonable teen, multiple, high teen, multiple.

Jim Cramer (2:09)

And if you broke it up, you know, it would be a crusher because YouTube is so strong.

Jeff Marks (2:13)

Yeah, absolutely. Yeah, I mean, again, the advertising business, I think that reads well into meta, by the way. A lot of people are looking at what Snap had to say about a pause, some pause in some advertising spending related to the onset of the war in the Middle East.

Jim Cramer (2:27)

But yeah, I mean, could there be a pause? I mean, you have mostly longer term contracts. Now, as someone who's been a lot of businesses away from what we do, you reach people with reels and you reach people with Instagram. And you don't reach them even with Google.

You know, if you're in a business that you can't sell liquor on Amazon, there's just one place to go.

Now, do you want to go? I don't know. I mean, I'd like to be able to reach people many ways, but you want to reach them with Instagram and reels.

Jeff Marks (2:52)

Yeah. Well, look, I think we'll hear from Meta tonight. Obviously, reels doing well, have to make sure expenses keep in check.

Jim Cramer (3:01)

A year of efficiency.

Jeff Marks (3:02)

Yeah, a year of efficiency. Hopefully, that carries into 24

Jim Cramer (3:04)

Right.

Start your day with my outlook on the market. Every morning, visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

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