Tech Turbulence, Exclusive: Boeing CEO, Atlanta Braves Go Public 7/26/23

SPEAKER_1 (0:00)

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Jim Cramer (0:32)

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 (0:39)

Good Wednesday morning, and welcome to Swap on the Street. I'm David Faber with Jim Cramer. We're live from Post 9 at the New York Stock Exchange. Carl has the morning off. Future's looking like we're gonna have a lower open. Of course, two o'clock Fed meeting. Can't forget that.

And an awful lot of earnings to digest this morning. That's where our roadmap starts. Alphabet and Microsoft, yep, the two of the biggest giants out there.

They have earnings. Stock's moving in opposite directions. Jim and I will break that down. Plus, we do have Boeing shares higher. That on its better than expected earnings.

And Dave Calhoun comes in.

Jim Cramer (1:15)

Sharply better.

David Faber (1:17)

Sharply better.

Jim Cramer (1:17)

Sharply.

David Faber (1:18)

Dave Calhoun's gonna join us a few minutes from now to talk about the quarter and the road ahead, of course. We're also gonna look, speaking of the road ahead, to the Fed. Expected to hike interest rates this afternoon following what was that pause. All right, let's start with Alphabet and Microsoft. Jim, I know you've obviously been working on this ever since they reported those numbers.

I got a bunch of stuff here as well. Just start us off. What are you thinking?

Jim Cramer (1:44)

First of all, Alphabet was extraordinary because Search was so good. I know people said Cloud was good. It was good, but remember it's off a small base.

What I think that really happened was this was the quarter where YouTube, which has no traffic acquisition costs, became the principle method for a lot of companies to be able to reach young people around the globe. I think that's the major takeaway.

David Faber (2:06)

A $7.7 billion in revenues and it inflected positively.

Jim Cramer (2:09)

It inflected positively, and I've been waiting for that.

David Faber (2:11)

And it's been going the other way. Just to put it in perspective, by the way, at a $7.7 billion quarter revenue run rate, it's one of the biggest media companies out there where you could just have it on its own.

Jim Cramer (2:22)

I think there's a roadmap which says it's going to be the biggest. I mean, if you talk to a James Quincy from Coca-Cola, this is how people are reaching people, because you can tailor it. It's a remarkable medium, and this is before they really put in anything about the NFL ticket.

Search was extraordinary. Yes, we don't want Ruth to leave as CFO, but she's going to stay as president. She's going to look at investments. Ruth Porat, who's extraordinary.

David Faber (2:44)

Ruth Porat, 14-year CFO, now becoming president and also chief investment officer, overseeing things like Waymo.

Jim Cramer (2:51)

Read the obituary of her father, and you will discover a great man.

Truly unbelievable man. I liked everything I heard.

David Faber (2:58)

But by the way, there's also a belief that a new CFO will be there.

Obviously, I'm talking to shareholders who are hopeful. More focused on costs even.

Jim Cramer (3:05)

Exactly.

David Faber (3:06)

That's the hope.

Jim Cramer (3:07)

Okay, so there was a decline in costs while there was acceleration in search, but she did say that that was kind of one-off.

But people are not regarding this one-off. They did take out a big head cap in a rip.

David Faber (3:19)

Their operating margin at Alphabet was 29%. That's a nice margin.

Jim Cramer (3:24)

Yes, it is.

David Faber (3:25)

And again, sort of they have great leverage with that margin.

Jim Cramer (3:28)

28% bumping cloud.

David Faber (3:29)

Great operating leverage.

Jim Cramer (3:30)

It was a great court.

David Faber (3:31)

And they didn't lose share and search. Now it's early. It's really early.

SPEAKER_5 (3:36)

Yes.

David Faber (3:36)

But I guess some of us have been wondering, well, will you start to see some signs of Bing, Microsoft's product, Incursion, as a result, of course, of its incorporation of ChatGPT, essentially. No real sign.

Jim Cramer (3:47)

No, it actually went the other way. But I thought what was interesting was that they spent more time talking about artificial intelligence than Microsoft did.