"Magnificent 7" Earnings Reaction: Meta Surges, Tesla Jumps, Microsoft Slumps 1/29/26

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Carl Quintanilla (0:59)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures are steady as big cap tech reasserts itself on the back of Meta and IBM, Microsoft and ServiceNow not as much. Commodity is still a story, gold above $5,500, oil above $65, Brent's near $70. Roadmap begins with these big moves in large cap tech, Meta, Microsoft, Tesla, all making headlines on the back of their earnings and conference calls.

David Faber (1:34)

Oil hit $70 a barrel and gold hits a new record. It is now above $5,500. Gold price is now up almost 30 percent. That's just for this year.

Plus, we've got a flood of earnings out this morning, Caterpillar, Comcast, Blackstone and more. Honeywell also, for example, out with results. That company CEO is going to join us later this hour. We'll get the outlook as well as new developments involving the spinoff of important businesses there.

Carl Quintanilla (2:02)

Let's begin this morning with mega cap tech. Meta is probably the biggest story up sharply on this quarterly beat. Mark Zuckerberg delved into his company's AI strategy on the call last night.

Mark Zuckerberg (2:12)

We are now seeing a major AI acceleration. I expect 2026 to be a year where this wave accelerates even further on several fronts. We're starting to see agents really work. This will unlock the ability to build completely new products and transform how we work. In 25, we rebuilt the foundations of our AI program. Over the coming months, we're going to start shipping our new models and products. I expect our first models will be good, but more importantly, we'll show the rapid trajectory that we're on. Then I expect us to steadily push the frontier over the course of the year as we continue to release new models.

Carl Quintanilla (2:53)

Headlines today, Jim, that the street's giving him the green light on the spending.

Jim Cramer (2:57)

First company, other than NVIDIA, where I just say, you know what? AI, they are really monetizing it and doing it in a way that is just incredible. For things like reels, where they're getting a lot more engagement, engagement being the key word here, people are very excited about looking at the ads. Remember, they have 3 billion people. It's working. If you want to advertise and you are, say, a consumer product company, I want to give a check to Mark Zuckerberg. I'm going to have really big ROI myself and so is he.

David Faber (3:28)

The up 33 percent number for Q1, that is just incredible. Some of the superlatives used by a couple of people I've spoken to this morning. That kind of a growth rate helps you withstand capital expenditures that are going to be between $115 billion and $135 billion this year.

Jim Cramer (3:54)

He's going to make more. He has figured out how to have AI make AI. This was a tour de force call. It was very straightforward. We did a note last night for the club, and I just said, it's got to be up 100 I mean, because even reality laps.

Even the glasses may have a payoff. It's almost as if he heard what we were saying. He said, all right, let's fix it. Although, by the way, they did hire a lot of big, expensive talent.

David Faber (4:20)

Well, I'm one of the AI friends, of course, starting with Alexander Wang and going up from there, or not up necessarily because they did pay an enormous amount of money to own a large portion of his old company. But yeah, they've hired very aggressively and have incredibly high levels for AI talent. That said, guys, I also note as we continue to try to focus on companies that are using AI and how they're using it, it's not just Meta using, of course, the tools it's providing to its customers. I would note Zuckerberg's comments about native tooling and what Meta is able to do internally in terms of getting things done. Take a listen.