Hey, I'm Kramer. Welcome to Mad Money. Welcome to Crane America. People make friends. I'm just trying to make you a little bit of money. My job is not just to entertain you, but to educate, to do some teaching. Call me 1 800743 CNBC. Tweet me at Jim Kramer. The regular economy got a little help today. It was the help it needed. A quarter point rate cut from the Fed, which should immediately translate into lower borrowing costs for a variety of shorter term loans, although not necessarily longerterm ones bec ...

Market Trends & Monetary Policy - The Federal Reserve (Fed) implemented a 025% rate cut, aiming to lower short-term borrowing costs [1] - The Fed might not cut rates again next month, leading to market fluctuations [2] - Consumer spending on larger purchases, vacations, and dining out is declining due to job security concerns and inflation [2] Technology & AI Impact - Artificial intelligence (AI) is causing job anxiety, with Nvidia ($5 trillion market cap) being the focal point [4] - Nvidia is viewed as an intellectual engine that can enhance productivity and reduce costs [5] - Companies should recognize AI's potential to improve productivity and enable creation at lower costs [5] - Individuals need to adapt to AI to avoid being left behind [6] Market Performance - The Dow Jones Industrial Average (Dow) decreased by 74 points [3] - The S&P 500 ended with a minimal decrease [3] - The NASDAQ Composite still gained 055% [3]

Market Sentiment - Liquidity bubble is poised to pop, shorting momentum is suggested [1] - Nvidia is seen as the poster child for momentum, avoidance is advised [1] Stock Specifics - Croup is expected to go back north of 100 [1] - PSX is mentioned [2] - Expectation for a stock to be below 200 [2]

Revenue and Expense Growth - Meta's revenue growth is expected to be around 18% next year, higher than the street's expectation of 16% [3][4][13] - Meta's expense growth is projected to be north of 30% [4] - In the September quarter, Meta's revenue growth was 23%, while expense growth was 32% [3] - In 2024, Meta's revenue growth was about 23%, and expense growth was about 8% [2] - In the first two quarters of this year, Meta's revenue growth was 22%, and expense growth was 12% [2] Capital Expenditure (Capex) and AI Investment - Meta is aggressively increasing expenses related to third-party capex spend [3] - Meta's CEO is setting the company up to be the most optimistic regarding AI, evidenced by the increase in capex [7] - Meta is building its AI infrastructure for the most optimistic case [9] - Google is guiding up their capex to be up like 25% next year, similar to Microsoft and Amazon [8] User Engagement - 43% of the world uses Meta's products on a daily basis, and the rate of usage is accelerating [4] Market Expectations and Stock Performance - The street is looking for 40% growth for Meta in 2026, but it's probably going to be up more than 60% [8] - Investors are recalibrating Meta's stock due to the shift in expense growth [7] - Meta needs to show improvement in the December quarter, with revenue growth higher and expenses lower than expected [12] - Meta needs to continue demonstrating that AI is driving revenue growth [13]

Market Performance - Nasdaq closed in the green, while the S&P was nearly unchanged and the Dow was down more than 70 points [1] - Nvidia became the first company to hit a $5 trillion valuation, up nearly 15% in the last five trading sessions [1] - Adidas shares dropped more than 10% due to weak sales in North America [1] - Gold settled back above $4,000 but pulled back in the last few hours [1] Federal Reserve (The Fed) Actions and Stance - The Fed cut interest rates by a quarter point, bringing the new range to 375 to 4% [4] - Fed Chair Powell signaled a more neutral stance on a December rate cut, disappointing markets [4] - Traders are pricing in a 30+% chance that rates will remain unchanged at the central bank's final meeting of 2025 [3] - The probability of a rate cut in January rose from 42% to 80% after the press conference [5] - Two descents occurred during the vote: one wanted a 50 basis point rate cut, and the other favored no rate change [7] Economic Indicators and Concerns - The Fed noted reasonably strong economic growth and a booming stock market [6] - The Fed is assessing whether it has taken out enough insurance against a potential weakening in the job market [9] - Inflation is still high, and core PCE is going up [15] - The market may be overly optimistic about future rate cuts, as the Fed indicated that unless data weakens meaningfully, they are not cutting in December [14]

Capital Expenditure (Capex) & Investment - Meta raised its 2025 capital expenditures range to $70-72 billion, up from a prior range of $66-72 billion, to invest in AI strength [1] - Meta expects capital expenditure dollar growth to be notably larger next year (2026) [1] - Meta has recent cloud deals including a $10 billion deal with Google, a $14 billion deal with CoreWeave, and a $20 billion deal with Oracle [2] - Tech sector is shifting from "capex light" to "capex heavy," similar to energy exploration companies [4] - Companies are investing ever larger amounts of capex to keep up with AI growth, potentially diminishing the value proposition and return on investment [5] Financial Implications & Market Concerns - Increased capex spending is raising concerns about ROI [3][5][6] - Meta's data center build-out is starting to hit the debt markets [10] - Blue Owl is lending $27 billion for Meta's data center in Louisiana, with a 20% stake [11] - Some debt is being issued at 1% above, potentially becoming junk and finding its way into ETFs [12] - Companies have been funding buildout through cash flow, but this may not be sustainable as it reaches 30% of revenue [13] Meta's Performance & Strategy - Meta AI is currently behind other chatbots, and the company is investing to improve it [8] - Meta's ad targeting has been good, but there's a potential wall and increased competition from companies like OpenAI [9][10] - Meta took a $16 billion charge, and without it, EPS would have been 10% better than expected [16] - Margins are now north of 40% [16]

top and bottom line estimates. The conference call kicks off later to this hour. For more, let's bring in CNBC's Steve Kovac.Steve, >> yeah, on the surface here, you got beats across the board, Melissa, but you see the stock still down. EPS was a beat, revenue was a beat, and even Azure cloud growth was a big beat here, 40% compared to the 38.2% expected. But it's really unclear what's dragging the stock lower.Intelligent Cloud only beat by a tiny bit. Perhaps also a runup of the shares into earnings. They ...

Google's Performance and Market Position - Google's performance beat expectations across almost every metric, demonstrating impressive results [1] - Concerns about an existential threat to Google's core search business have diminished, and the gap with competitors like ChatGPT appears to be narrowing [5] - Google Cloud is gaining on AWS (Amazon Web Services), the number one market share holder, and Microsoft Azure, but cloud growth impacts gross margins [8] - Investors are realizing that Google is not cannibalizing its digital ad business as much as initially feared [9] AI and Competition - Microsoft's early lead in AI, following its partnership with OpenAI, seems to be changing, with Google gaining momentum [3] - Google's approach to AI with Gemini is different from Microsoft's strategy with OpenAI, which focuses on leveraging Azure for enterprise clients [6] - The initial launch of Bard, Gemini's predecessor, was considered a disaster, raising concerns about cannibalizing Google's ad business [7] Investment Perspective - Despite a significant run-up in the stock price, Google's valuation remains reasonable, especially considering its momentum and evolution [4] - Google's multiple is comparable to Meta's, but Google is considered to have better prospects [10]

Mackenzie Sagalas is digging into those numbers. Hey Mac, bet's results show clear upside from its AI push. The biggest concern going in was search, its core revenue engine, and a key read on both the ad market and whether Genai is starting to cannibalize the business.But that segment beat by one and a half billion dollars. Its chatbot Gemini now has 650 million monthly active users, not far behind chat GBT's 800 million weekly. Cloud also showing strength, topping estimates on the back of new AI deals with ...

David Zervos, Jefferies, joins 'Closing Bell Overtime' to talk today's FOMC announcement. ...