Squawk on the Street Cramer's Morning Take: Meta & Microsoft 7/31/25
Jul 31, 2025
Strong earnings from Meta and Microsoft are making waves in the market. The discussion delves into their hefty investments in artificial intelligence, revealing how these moves could shape future trends. There's a fascinating look at the tech sector's strategic pushes in data centers and their revenue growth, alongside a surprising analogy with baseball trades. Insights into Q3 revenue surprises hint at manageable hiring costs and valuation debates, sparking interest in potential undervaluation in the market.
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Tech Giants' Massive AI Investment
- Meta and Microsoft are investing tens of billions in AI, impacting many other companies downstream.
- Their spending on data centers benefits companies like NVIDIA and Eaton, showing broad economic influence.
Meta's Strong Quarter and Vision
- Meta posted a 21% revenue acceleration and beat estimates by $2.7 billion with significant CapEx.
- CEO Zuckerberg envisions achieving superintelligence, aiming to build a brain trust for groundbreaking innovation.
AI Interaction and Superintelligence Impact
- Meta believes humans will interact with AI through new devices like smart glasses.
- Superintelligence could create winners and losers, highlighting a future advantage for users of superintelligent systems.