Meta’s Monster Quarter, Rally Rolls On, Live: ServiceNow CEO 7/27/23

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David Faber (0:31)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Good Thursday morning, everybody. Welcome to Squawk on the Street. I'm David Faber. He is Jim Cramer. And we are live from Post 9 at the New York Stock Exchange. Carl has the morning off. You just saw Futures. Take another look at them, will you?

Look at that NASDAQ number.

Jim Cramer (0:50)

Well, David, there's a company that's on the NASDAQ that we're going to have to discuss.

David Faber (0:55)

Okay, I bet you that's where our roadmap starts.

The name is Meta, and it was a monster quarter. Shares are going to be higher.

Sara Eisen (1:04)

I don't think you can use that term in a long time.

David Faber (1:05)

A lot higher. Double-digit revenue growth for the first time since 2021 And overall, of course, you just saw what we're setting up for in terms of the market. It's bullish momentum. This after the Fed does raise rates to the highest level in more than 22 years. Fresh data this morning, also perhaps adding to the rally.

And ServiceNow unveiling new generative AI tools. This after the company beat on the top and bottom lines.

Its CEO will join us in a first on CNBC interview this hour. All right, we're gonna start with Meta and that big earnings beat issuing. Optimistic sales guidance for the third quarter, showing an 11% uptick in revenue. Here's CEO Mark Zuckerberg on the call last night. He was discussing the company's outlook during what is still the Year of Efficiency.

Mark Zuckerberg (1:56)

The Year of Efficiency was always about two different goals, becoming an even stronger technology company and improving our financial results so we can invest aggressively in our ambitious long-term roadmap. Now that we've gotten through the major layoffs, the rest of 2023 will be about creating stability for employees, removing barriers that slow us down, introducing new AI-powered tools to speed us up and so on.

David Faber (2:22)

All right, what do you think?

Jim Cramer (2:24)

Reels is fabulous.

Instagram's great. I wouldn't even forget WhatsApp is maybe worth the price of like a lot of different companies that we follow. That you can lose $10 billion on Reality Labs and it doesn't impact the company. It shows you what a good business person he is. That's what he is, he's a good business person.

David Faber (2:43)

And I wanna talk more about him, but I do wanna stop for a moment and just consider the amount of losses so far that they have amassed on Reality Labs. It's 10 billion recently. It's $38 billion and counting.

I don't know of any other company that's lost $38 billion with nothing, by the way, generating virtually no revenue.

Jim Cramer (3:03)

I mean, versus BusinessPro, which is gonna be amazing.

David Faber (3:06)

The business power's ahead.

Jim Cramer (3:08)

He figured out how to offer, two companies are standing here. Both Alphabet and Facebook, Meta, figured out what advertisers want. And so the run from Linear to these two companies is extraordinary.

And it's so targeted that you have to say to yourself, I can't believe if I'm an advertiser, I can go to Meta and reach everybody in the world. And so that's what's doing it. Now, Reality Labs, candidly, having worn the headset, the new one is a little bit lighter, and having worn the Apple, I mean, Tim Cook's the winner here.

David Faber (3:45)

Although the price differential is enormous.

Jim Cramer (3:47)

I think that one of these pathetic telco companies will give it away.

David Faber (3:51)

$3,500 for the Apple Vision Pro?

Jim Cramer (3:54)

They can do a buy now, pay later. They ought to do it. Those are just, have you seen the value subtracted of a company like ATT over the course of many years?

David Faber (4:01)

Yes.

Jim Cramer (4:02)

Well, I mean, they got to offer you something.

David Faber (4:04)

They may need to. But back to, I mean, 38 billion of losses, and by the end, by the time he's done, it could be $60 billion spent on-

Jim Cramer (4:10)

But why are you focused on something that he's not doing right?

David Faber (4:13)

I'm not, I'm not. I'm just pointing it out as somebody who's been covering business for 37 years. I don't think I've ever quite seen anything like that.