Markets Ride the AI Boom: Microsoft Joins the $4T Club, Meta Soars on Earnings 7/31/25

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Jim Cramer (1:02)

It's Jim Cramer here.

Jim Cramer (1:03)

You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

David Faber (1:10)

So we're here for a number of tech IPOs, and Figma is trying to jump on the bandwagon, the software design software company set to go public here at the Big Board today. Good Thursday morning. Welcome to Squawk on the Street. I'm David Faber alongside Jim Cramer, and we are live from Post9 at the aforementioned New York Stock Exchange. Carl has the morning off. Let's give you a look at futures. We're looking for a higher open when we get started with trading one and a half hour from now on the strength of earnings that we are going to spend a lot of time talking about. And what am I talking about? Well, that's where our roadmap starts, Microsoft and Meta. They are both soaring in early trading, this in the back of their blowout earnings, strong guidance. Microsoft, by the way, is going to have a four trillion, four handle in front of a trillion for the first time ever. And that will join Nvidia in that club. Fresh inflation data shows core prices edging slightly higher year on year. This as two Fed governors go against the decision to hold rates where they are. That's the first time we've seen two descents since 1993

President Trump announces a trade deal with South Korea. Expected as well to meet with Mexico's president today. This as we approach, of course, the August 1st tariff deadline for a number of countries, a number of deals done as well. But we got to get to earnings. That's where this market is focused right now. And let's start with Microsoft, Jim. Then we'll get to Meta. Time allowing, we'll try and get through so many others.

Jim Cramer (2:37)

We have to, because it's really the biggest day of the year, frankly.

David Faber (2:40)

Yeah. And Microsoft, I mean, on every measure, let's, I mean, Azure, 39% and pointing to 37% growth for the first quarter of this year. And it goes on from there in terms of what AI is doing for the company and so many other things.

Jim Cramer (2:57)

Yeah. I think that people, it's hard for people to understand, unless you follow this in a granular fashion, that just a few quarters ago, we were thinking that this business was going to decelerate. Decelerate meant that you didn't have a great company. You had a company that theoretically could be well behind Amazon Web Services. You start thinking about whether it was like a Google Cloud level. Now, it's been a dramatic acceleration. These guys are competitive and they don't necessarily give the air of competition.

But, this is just a gut check on everybody else, because this is so extraordinary.

David Faber (3:37)

Yeah.

Jim Cramer (3:38)

Now, we do have Amazon.

David Faber (3:39)

We do. And it's funny you went there right away, but you and I tend to think alike. We do have Amazon coming and there is going to be a focus. Not to, I want, we're going to get back to Microsoft in a moment, but AWS, of course, which was the first, which is still the biggest in terms of cloud. You know, the buy side or sell sides around expecting 17% growth. So, I'll put a question to you, which is, given this number from Azure, do expectations for AWS have to go higher? And if they're not met, is that going to hurt Amazon?

Jim Cramer (4:09)

Well, you know, but Brunel Slavsky, he'll give you a good read, but I remember a fight that I had with him a couple years ago where they were going from 12 down to 10 So it's starting to go in the right direction. The numbers are so huge.