Cramer's Morning Take: Tech Stocks 6/22/23

SPEAKER_1 (0:00)

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Jim Cramer (0:32)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

There's so much to report on. So many of our stocks have been touched by research today, but I want to start by saying that it's a pal day, and it's kind of a neutral day, and I think most importantly, since you and I are always discussing what to do, it is no man's land on the oscillator. So it's very difficult for us to say, you know what, let's plant the flag and buy some cat, or let's do some selling of lily. There's just nothing that I see to do at these levels.

Jeff Marks (1:00)

Yep, and as we see again, yesterday was a nice rotation back into the cyclicals with technology stocks lagging. Well, again, there's no follow through. We've seen this as a pattern the last couple of days with tech stocks now leading.

AMD down early, now nicely up. They're coming back to the Palo Alto's of the world.

Jim Cramer (1:19)

They sure are.

Jeff Marks (1:20)

Amazon having a big day.

Jim Cramer (1:22)

Well, it's one of the reasons why, look, remember, I'm never gonna say anyone's taking a profit, but the reason why we stay with the Magnificent 7 and why we stay with the Palo Alto is we always think in the end they do come back.

And we don't think that that's whether they should or not. We were talking about they used to trade on earnings. I mean, these now trade on Amazon Web Services. Trade's on the idea that, I mean, Amazon trades on the idea that Amazon Web Services is going to even flack. We don't know. We don't know.

Jeff Marks (1:48)

Right, and that was the basis of a loop capital note today. They raised their price target to 180, which is a big price target from here. They're saying the AWS inflection's nearing consensus way too low on retail margins. Part of the reason why is because you have revenue from advertising growing. That's high margin commissions. That's high growing.

But it feels like we're hearing a lot of that now, right? We had Jeffries mention that the other day. At the same time-

Jim Cramer (2:13)

I can't believe it, by the way. I just want everyone to know that I think Amazon Web Services is going down somewhat precipitably this quarter because there's a lot of share take from others.

Jeff Marks (2:22)

The slowdown may continue for another quarter.

Jim Cramer (2:24)

Exactly. So I think that when you see the next quarter, unless they make a very bold claim that it is going to inflect, then you should understand that there's going to be a lot of turmoil. Let's say there's turmoil.

Jeff Marks (2:33)

But we know the market likes to look ahead. So if they're nearing this inflection, whether it's AI-related or macro-related, people will point to that. By the way, so you had the FTC case against Amazon yesterday about Prime going after how hard it is to cancel Prime.

JP Morgan, based on their analysis, they say today that a Prime subscription is worth $1,225 per year, almost nine times the actual annual price. So that's the case that, yeah, maybe it's tough to cancel, but it's still one of the great all-time deals.

Jim Cramer (3:05)

Well, I mean, yeah, Costco's easier to cancel, okay? Big deal. I have to tell you that I think that when the FTC, if you take a look at a law review article that Selina Khan wrote, a second-year law student, about impeding Amazon, you almost feel like it's such an amateur hour of what's going on in Washington. I mean, this is just insane. I went to law school, I kind of followed this stuff.

This is amateur. It's amateur and petty.

Start your day with my out look on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_4 (3:45)

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