Tech Earnings: Tesla Falls, ServiceNow Tumbles, IBM Slides 4/23/26

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Jim Cramer (0:58)

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.

David Faber (1:06)

Good Thursday morning, welcome to Squawk on the Street. I'm David Faber with Jim Cramer. We're live from Post 9 at the New York Stock Exchange.

SPEAKER_5 (1:11)

Carl has the morning off.

David Faber (1:13)

Let's give you a look at futures as we get ready to begin another trading day here.

We are looking for a lower open. I think that's fair to say 30 minutes from now. Yeah. Let's get to our roadmap. It does begin with continuing to keep an eye on records. The S&P 500 and the NASDAQ are coming off with a fresh highs. But as you just saw, we may be giving back a bit of those gains, at least at the open. We'll also talk Tesla, of course. It is a number, one of a number of big companies that have reported. Shares there under pressure. Quarterly results did top estimates, but Wall Street is watching the company's robotaxi rollout and all of that money that it is going to be spending.

ServiceNow, IBM also going to be stocks we keep an eye on. They are the biggest laggards pre-market, fueling declines in software.

Once again, raising those fears about renewed disruption from AI and then also sending the money back to where else? Semis. We're going to talk about all of it. Jim, I guess let's start with Tesla this morning and what Elon had to say about the company's CapEx plan on last night's earnings call. Take a listen.

SPEAKER_5 (2:23)

We're going to be substantially increasing our investments in the future, so you should expect to see a very significant increase in capital expenditures, but I think well justified for a substantially increased future revenue stream.

And obviously Tesla is not alone in this. I think you've seen most, if not all, certainly the major technology companies substantially increasing their capital investments, and we're going to be doing the same. I think it's going to pay off in a very big way.

David Faber (3:05)

Of course, those words, perhaps the positive free cash flow was something of a surprise, actually even the earnings themselves, the revenues, and yet it was that comment around CapEx and also some things around full self-driving, some things, some concerns that it is going to be perhaps later than had been anticipated that moved the stock in an opposite direction.

Jim Cramer (3:26)

Well, look, as someone who is looking at all the other technologies, I would be a buyer of Tesla today and there is a moment in this conference call that is so the Elon I love, okay? Talk about Optimus, we know that, that's humanoid.

David Faber (3:42)

Yes, humanoid robots.

Jim Cramer (3:44)

The company, Optimus will not only be Tesla's biggest product, but probably the biggest product ever.

David Faber (3:53)

He has said that. I mean, the numbers that he uses in terms of the total addressable market, not to mention what he believes that they can garner in terms of revenues are staggering to say the least.

Jim Cramer (4:02)

Well, I have felt that this is why you own it.

By the way, you know what he also has? Scale. He has all these plants. Me always has these pictures of like happy people. I get the sense they are happy.

But David, he thinks so much bigger than everyone other than Jensen Wong. I really enjoy it. This man wants to dominate. And you know what? Walter Isaacson, one of my absolute favorite people, was talking this morning about something that you've mentioned, which is that, you know, well, they all combine. We all get one big Musk.