Big Earnings Movers: Microsoft Jumps, Alphabet Slumps, Boeing CEO Exclusive 10/25/23

Squawk on the Street

CNBC

Investing, Business, News

4.1 • 567 Ratings

🗓️ 25 October 2023

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber led off the show with mega-tech earnings: Microsoft shares jumped on a quarterly beat while Alphabet fell sharply despite beating on the top and bottom lines. The anchors discussed how the cloud and AI made the difference in both cases. Boeing CEO Dave Calhoun joined the program to discuss his company's results - and the stock's rise in the face of a wider-than-expected Q3 loss. Also in focus: What to expect from Meta's after-the-bellresults, earnings movers including Visa and T-Mobile US, Wall Street calls on Apple, an update on the Israel-Hamas War. Squawk on the Street Disclaimer

Transcript

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0:00.0	Market Insight and Analysis. You're listening to the opening bell of CNBC, Squawk on the Street.
0:05.9	Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Kinteneer with Jim Kramer, David Faber, Post 9 of the New York Stock Exchange.
0:11.9	Futures are split this morning. Dow is going to benefit from a solid open for Boeing and Microsoft, but Alphabet getting a little more scrutiny today on that slowdown in cloud.
0:20.3	Of course, Meta and IBM tonight. Our roadmap begins with Alphabet's cloud little more scrutiny today on that slowdown in cloud, of course, meta and IBM tonight.
0:22.6	Our roadmap begins with Alphabet's cloud conundrum.
0:24.6	The company does top estimates, but weaker than expected cloud revenue is pressuring the stock.
0:29.6	On the other hand, Microsoft is the top gainer on the S&P so far.
0:32.6	It is getting a big boost from faster cloud growth and of course the rise of generative AI.
0:39.3	Boeing shows a rallying this despite a wider than expected loss in the third quarter.
0:44.3	CEO Dave Calhoun, he's going to join us shortly.
0:47.3	We'll be breaking down those results with him in just a few minutes.
0:50.3	Let's though get to the tech giants in this battle over AI. Microsoft is rising in the
0:55.3	pre-market, better than expected quarterly numbers, Azure and other cloud revenue up 29, but
1:00.3	Alphabet, as David said, down sharply despite its own top and bottom line beat. Google Cloud
1:04.9	sales coming in below consensus, Jim, some discussion about customers optimizing their spend.
1:13.6	I remember when I first got in the business, there would be grants on one side. That was actually a retailer. On the other side
1:18.4	would be Target. And it always seemed to rain on grants sides. Never rained on target side.
1:24.6	That's what this felt like to me. So there's optimization going on at Google.
1:30.3	But David, they weren't optimizing Microsoft.
1:33.3	Right, and why is that?
1:35.3	Probably because of their AI offerings.
1:36.3	Don't you think? I think so.
	...

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