Stocks Extend Sell-off, Walmart CEO to Retire, Vertiv Exec. Chmn. Cote on AI 11/14/25

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Jim Cramer (1:00)

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

Carl Quintanilla (1:08)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer here, Post 9 of the New York Stock Exchange. Faber's on assignment. The market looks like another rough Friday. Futures do add to Thursday's weakness. We are on pace for the worst November since 2008, as two big tailwinds, the AI trade and the Fed cut trade, come under pressure 10 year 408 Our roadmap this morning goes like this, positioning after the big tech sell off. We'll discuss if there's more pain to come or if it's a buying opportunity. Major shakeup at Walmart today. Doug McMillan stepping down. Stocks under some pressure in early trading. And finding safety in the volatility. One mega cap name that is outperforming rivals and the one sector that is getting huge rotation on fire right now. Let's begin with the markets though on track to extend the sell off on Thursday. AI a big topic in yesterday's delivering Alpha event at CNBC. General Atlantic CEO Bill Ford was asked if we are seeing a bubble. Here is his response.

Bill Ford (2:03)

I'm going to say it may be a little bit controversial. Not a bubble. And I say not a bubble because I think this is a very real tech cycle. I think back to the PC cycle, the 80s, the internet cycle, the 90s, the mobile cycle of the 2000s, cloud 2010s, and now AI. And this will be a very, very real market. It will create a lot of value. I think there will be a productivity payback long term. So I don't think a bubble. But I do think moments of overvaluation, moments of misallocation of capital, sure.

Carl Quintanilla (2:32)

Kind of an echo, Jim, of what Jeff Bezos has said in recent weeks. David Solomon. Sort of this industrial bubble idea that there will be misallocation.

Jim Cramer (2:40)

Yeah, I spoke to Bill yesterday. And Bill's an old friend for many, many years. And I think he's a very common sense goalie. He thinks it's going to be very good. At times we're going to get too exuberant. And I think that we're one of those moments.

I was telling him that I felt that the year of magical investing had ended. And he thought that that was an appropriate term.

Carl Quintanilla (2:59)

Great framing, great framing. Just in time.

Jim Cramer (3:01)

Just in time. And he was a, well, I mean, we are friends enough that he would say, hey, you know, that was good. You know, I'm proud of you and stuff. And I said, look, I think that your call at delivering Alphys is terrific because what you're saying is it's not over. It's just that there are times when people get too excited. And it's not 2000 because it was over and people kept staying too excited because they didn't have any money. He was not as critical as I was about some of the companies that are spending too much. I was more critical, for instance, of OpenAI. He's not as critical of OpenAI, but obviously when you have something like a business to business, anthropic business, that's where you might be. Business to consumer OpenAI is very, very hard.

And that's one of the reasons why I worry about OpenAI. It's business to consumer. Business to business, like anthropic, is just this consistent level. And I just think that, Bill's remarkable. He's got a great view on China too. And he's just a good guy. And he really knows who greats him.

Carl Quintanilla (4:01)

Although, I mean, we've talked about sort of the narrow pillar of the high income, high net worth American holding up spending. If a wealth effect does start to erode here in equities, what does that do to the macro since we've already seen trouble at the low end?