Stocks Rebound, Lyft’s Typo Turnaround, Zuckerberg’s Vision Pro Review 2/14/24

Carl Quintanilla (0:00)

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 Wednesday 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. How much can the bulls get back after the worst day for the Dow in almost a year, worse for the Russell in almost two?

Yields are lower today's 10 years, still above 4.3 though in Cisco earnings tonight. Our roadmap begins with stocks seeking a rebound after that drop. Investors now pushing back rate cut expectations until June.

David Faber (0:31)

Plus shares of Uber and Lyft are both rallying ahead of the open. Lyft says it expects to post positive free cash flow for the first time this year. Uber authorizes a $7 billion purchase.

As I said, both are up. Airbnb shares also on the move. CEO Brian Chesky saying the company plans to expand beyond its core service with the help of AI.

Carl Quintanilla (0:53)

Let's begin with the markets as we said, the Dow coming off the worst day since last March. S&P not as much going back to January, but obviously Jim, in fact, it was the former president of the Boston Fed today said it was an overreaction.

Jim Cramer (1:06)

Well, I don't know if it's an overreaction. We've been up just non-stop since the beginning of November, and I think a lot of people just said, well, wait a second. We've got things like Arm, which are just too crazy where you've got a short squeeze. It's too much like GameStop. Arm became GameStop. One company is a growth stock and one is Caput.

I find that there is a level of enthusiasm that went too far.

I'm not saying everything is going to be Tesla, but Tesla is going to be like what can happen, which is you get too far and then the future is just okay. We'll see what happens with Airbnb. Do you really buy Uber for buyback? Don't you buy Uber for growth?

Yes, you can add a zero to Lyft and suddenly have a huge number, but then it comes back down. But it's indicative of what I see. I had Harley Ficklestein on last night, Shopify, one of the great growth stories of all time, and the stock gets hammered. Data dog, there's terrific quarter mix. So what I'm leading up to is the idea that, look, things are good, but can we just keep paying higher in an environment where the Fed's not going to cut? And the answer is that it's a little more problematic to keep paying higher for the same earnings and the same sales when, David, what happens is we don't get a cut.

David Faber (2:22)

Right. Although the same earnings and the same sales, I mean, people are willing to pay more still for growing significantly higher earnings and sales.

Jim Cramer (2:32)

Grow well, but it has to be more than expected.

David Faber (2:35)

Right. Which it has been for many of the companies that we cover closely, and certainly the biggest.

Jim Cramer (2:40)

The last 48 hours.

David Faber (2:41)

Mixed picture for the Mag 7, but at least a few of them have been in that bag. Right.

Jim Cramer (2:45)

Well, I'm just saying the last 48 hours, you've had a bunch of companies that everybody loves and they did the number, and they didn't raise. I mean, look at Cadence, upgraded to Cadence, by the way, is maybe the most dovetail partner to NVIDIA, and they did not raise.

You have a second dovetailer in the data center in Arista, and they did not raise.

David Faber (3:12)

Was that expected that they would raise guidance?

Jim Cramer (3:14)

Absolutely.

David Faber (3:16)

There was an expectation they would raise guidance. Neither of those companies did.

Haven't seen what their openness looks like at this point.

Jim Cramer (3:23)

A lot of people feel that they've slowed and that there's this air pocket. And I've got to tell you that both Cadence and, geez, you know, Arista did say, be aware that there might be this kind of overhang where a lot of stuff was, boy, look at that chart. Well, that's what I'm getting at. Do you want to come in now and just say, you know what, I am so early to Arista Networks, I've got to pull the trigger?

Does that look like early? That does not look like early.

David Faber (3:50)

No, may not be. I would have no idea.

Jim Cramer (3:53)

Well, then you would.

David Faber (3:54)