Premarket. Microsoft and intel are moving lower. Weve got a first look at the economy under president trump. It was a weak First Quarter, the question of course is has growth picked up since then. Starbucks out with results, the stock is slipping. A live and exclusive interview with Ceo Kevin Johnson and now chairman Howard Schultz. On the tech earnings front, amazon as you may know by now surpassing forecasts, getting a lift from the Cloud Business. Alphabet also above consensus as mobile search helped to drive ad sales higher. Microsoft and intel beat on the bottom line, but miss on the top line. Jim, theres a lot to get to last night. Last night was incredible to listen to not to the amazon call because amazon said, our cash flow is fabulous. All true. But the alphabet call was about how were not a Search Engine company thats driven by advertising although our advertising is up 50 . They said over and over again as we talked about earlier this week were cloud, were cloud, were cloud, were competitive. They also talked about chrome a little bit and they gave you a bit about waymo. A little bit. But overall what i loved about it, you remember all those articles about how the people were mad at them. You never believe the Youtube Boycott . No. A billion a day. Can you really stay away from the tv station that has a billion hours viewed . No. And the answer is, these guys, ruth poreat, she is incredible. He lets listen to what she said on the Conference Call. With we benefited from our teams innovation that continually enhance our advertising business as evidenced by the ongoing growth of the sites revenue. The increase in sites revenues reflects the healthy growth in mobile search. So ad revenue goes up 19 and pay clicks go up 44 . The rates go down a little bit. But this is a mobile offering. Now, i know that sounds silly but like facebook this thing does much better on mobile and its driving a lot of retail ads. You know, local retail. Again, they dont want that to be the focus. They really want the fact that they have got this great cloud ability and theyll give you cto and theyll work with you, then of course youre on the amazon call, they have this great cloud ability. Then youre on the microsoft call which is why we should talk a bit about that. Because nothing is going to grow faster over the next few years than cloud in general in terms of that as a service. Were going to be talking more and more about it as it becomes a more and more important component of the three companies you mentioned. Earlier this week, you highlighted diana greens comments at the conference where she said shes were going to be bigger than amazon in five years at google and both all of us sort of expressed a bit of doubt at that looked askance. Yeah. But its up four fold in four years. The ebitda is up. Microsoft cloud growth was up 52 year over year on 93 azure growth. Then you have google as well. So well keep talking about this cloud because its going to become a more and more important component of all the companys earnings. Why did alphabet have a multiple that was almost like the average stock . And the answer was very clear. It was because people say advertising is a 600 billion market. 90 of retail is still by the way bricks and mortar. But you need to get away from being an advertising company. By the way, did you read the amount of cash there that alphabet has . Tell me what the number is. How about 92 billion of which 55 billion is overseas. I mean, 55 billion, thats almost a market cap of salesforce. It is. Not even far from the market cap of netflix either. What can i say . Salesforce you say. Hold on. I was looking for a company that has the same you know, relative size. But your point on the cloud is good. Its getting noticed in mainstream coverage. Theres the times headlines that says its all being seen through the cloud prism, right . Cloud earnings are the constants. Yeah, i had work day as you had john donohoe on. I saw that. Suddenly let me point out that john donohoe is davids guest yeah. You just took him. Thank you so much. He said that the cloud is just were early in the infancy of the cloud which is really incredible. He said to say hi. Yeah. Great. Thats what i always get. Hi, im going on with jim. Hi. Intel has the revenue miss, jim. Data center was up a little slower that up the prior year, nine. Look, brian, hes not a hype artist. The data center was not what i wanted. Now, you can argue wait a second. Another way to look at this, which is to say there are a couple of days missing versus year over year. They have excellent cash flow. Theyll cut back their spend which i think is good. Look, theres been a thesis going on that the personal computer is better. Remember, thats big chunk. No its not. Were not bulls on personal computer. Hes like, please, man, youre killing yourself. But brian christenitch, hes a noble man. Theres not a lot of money in the internet of things. The client computing was okay. They had 2 billion to spend. Paid 1. 2 billion. Buy back bought back 1. 2 billion. People hate these guys and im telling you that its that that is just not right. They should not be hated. They are doing a lot of things right. Looks like by the way the acquisition this quarter didnt pan out. Im not going to say that i hate the guys. People want to hate them. Theyre not hatable. On amazon because look at this stock, its up almost 30 points at least it looks like right now. Should there be any concern that the north american operating concern fell by 62 basis points . I think most analysts took that into account. They said as the first line of the Conference Call, remember they do most in the note, operating cash flow. Increased 53 . 17. 6 billion. You know what . What that says to me well spend what we want. Then they spent a lot of time talking about india. India. India despite the way that apple will talk india next week. Capex, yeah, theyre spending a lot on fulfillment. David, once again youre hearing about robotics in fulfillment. Robotics, robotics, robotics. When i was out at alphabet which is you know google, robotics. Artificial intelligence. Artificial intelligence said cured this advertising problem. When they Frame International investment as a replay of the u. S. Playbook, that can work . Im buying it. I think you have to give them the benefit of the doubt. The Artificial Intelligence there too. I have to tell you machine learned Artificial Intelligence, theyre saying that the machines are smarter than we are. Theres a terminator aspect to it. As i keep hearing when im out there, the machines are learning faster than we thought they could. What does that mean . What if they talk to each other . What happens if they realize how flawed we should, or they dont like our policies or the way that the government is run . When they attain full consciousness. I have tried to talk to as many people as possible about this and its very mixed as to whether this will happen any time soon. This may be something to be concerned. Some say it would take 50 to 100 years and this month, jack dorsey said comments like that are irresponsible. Really smart people. There are machines right now that i will tell you that i have seen where i am told by executives, these are learning faster. These machines that are artificial arms, they seem to recognize hot. Playing neural network. Its the neural networks, not just throwing xcomputing power t something. Its similar to the brain and therefore learn. But they have a ways to go. I looked at the table looking for the name john connor. Couldnt find john connor. No fate. We need john connor and need him now. Amazon is still adding 130,000 actual people. Google, theyre adding thousands of engineers. You know, can i just say when youre reading or listening to the calls, you feel like youre an idiot. Im an idiot. I mean, again, one of dont sell yourself short. You can go to google and type something. Eagles first and it comes out eagles first. It has first draft barrett and then gives i mean, its scarry. Like type eeg it seems to know youre looking at the draft choice. I think thats scary. All right. So if i type is jim cramer is jim cramer a democrat or a republican . Is jim cramer rich . Is jim cramer sick . [ laughter ] all right, but those are the computer models anything about the wife . Sometimes you type in it has whos his wife, five different people. Thats all Machine Learning right there. Lets do a macro here. Initial reading of q1 gdp says that the investment environment was very strong. Jim, the weakest rise in Consumer Spend since 2009. I read that and, you know, look, i know youre not supposed to look through figures. Thats one of the things that the really great economist say, trust the data. You have to trust the data. I looked at that. 3 span and i keep thinking, okay, is there some way they missed the apple 7, some way they missed amazon . Because, you know, this was an amazon nonbricks and mortar, well talk to Howard Schultz and Kevin Johnson about that. It seems suspicious to me. I dont know. I dont want to necessarily say listen, that that data point doesnt make sense. But i struggle. I struggle. Im struggling. Although there does seem to be an underlying weakness in the consumer a little bit. After the auto there was a big stay at home. When i talked to pat doyle last night whos been the remarkable Dominos Pizza and starbucks is going to sort of indicate that . Something to fall back on . They said theres acceleration. So well give them that. March was a weird month. Traffic down too. There were issues. The traffic was down. Theres issues. I havent theres issues. Theres issues. Yeah. The time will tell if its tax refunds. If its weather. If its mobile order backup. You know . It could be the tax refunds. I have to tell you that when i was on the Buffalo Wild WingsConference Call, people are taking out, theyre not going in. Th theyre not spending as much. Theyre watching netflix on their xfinity which by the way my wifi drops constantly because i dont have it. Just a little plug for the network. My trainer came by at 3 30, you want to watch on netflix, i watch that circle. What is that circle . The windmill of death. I get that a lot of. Buffering. Someone in my ear said buffering. Well get to qualcomm as well. Later on this hour as you heard, starbucks executive chairman Howard Schultz and Kevin Johnson with some news of sales growth weighing on the stock this morning. Well get to the white house as well. Five ipos at the exchange here today. Were back here in a minute. Ve e the peace of mind and the security just like the marines did. At one point, i did change to a Different Company with car insurance, and i was not happy with the customer service. We have switched back over and we feel like were back home now. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children, and that they can be protected. Were the williams family, and were usaa members for life. Call usaa today to talk about your insurance needs. Qualcomm is moving lower in the premarket. The chipmaker sharply cutting the profit forecast saying it no longer expects in i patent licensing revenue from the iphone. As a result of this bitter legal battle between qualcomm and the company. Qualcomm is one of the worst five nasdaq 100 stocks of the month. Yeah, i was going over the last three recent comp calls they said this Nuclear Option could occur. It wasnt like it came out of left field. Yeah, remember they sued apple in California Court a couple of weeks back, responding to apples suit all over the world. Apple is suing them. Right. This is kind of like a david versus goliath. Qualcomm claims its a commercial dispute, they dont want to pay. Apple says its bigger than that. Look at 75 to 80 cents which we thought would be 91. 15. In the end theres kind of a fratricide here. And qualcomm has the relationships with those independent of apple but apple pays them and or directs them to withhold, even though they have the royalty agreements with the contract manufacturers, not with apple directly. The best thing qualcomms got going for it they can potentially buy inexpi. Thats a Charitable Trust holding. I dont like to hear the word potential. I think it will happen. Because its 105 and the deal is 110 . Shareholders will tell you if it was an independent company now, based on the pure multiples it would be trading higher. Hence the reason i say that qualcomm is one of the few things thats got going for it these days, they have it cheap. They have a contract, 110 cash. Thankfully no qualcomm stock, you know, not an issue in terms of so apple is playing hard ball. I wonder what are the alternatives . On sky Work Solutions which is a very Good Conference call theyre talking about how you have to have qualcomm. You cant get away from qualcomm. No one can get away from qualcomm, especially for 5g. You think its out there i mean verizon says 18. John legere he said it was started in 2015. Listen to john legere on 5g, hey, were ready. We have spectrum. You know john. I think john this is john. Hey, how are you doing, david . Are you okay . Heres what im thinking. We love legere. People wonder if its intels gain on the iphone at least. Interesting question. This is krzanichs moment. But were there if they call us. No, heres what you do as i taught selling at goldman. You know what . You be a little john legere. Were here for you if give a little more distance. You dont wear magenta, but you wear a tshirt underneath to preserve the shirt. I dont think you should fir agha mow necessarily. All right. Cant argue with john legere though. The man has up ended the entire industry. It was a nightmare for its competitors right now. He doesnt like our parent company. By the way the deadline expired last night. They can all talk. Woohoo. Yeah. Well get cramers mad dash after a break. Well count down to the opening bell. Look at the premarket as we wrap up the month of april today. At least from the trading basis. Back in a moment. Pass please. Im here to fix the elevator. Nothings wrong with the elevator. Right. But you want to fix it. Right. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. 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Keep your lifestyle healthy with aflac on the heels of their earnings last night well talk to Kevin Johnson, president and ceo of starbucks and executive chairman Howard Schultz later on this hour. Meantime, the opening bell is minutes away. Care of my portfol. Well, what are you doing tomorrow 10am . Staff meeting. Noon . Eating. 3 45 . Uh, compliance training. 6 30 . Sams baseball practice. 8 30 . Tai chi. Yeah, so sounds relaxing. Alright, 9 53 . I usually make their lunches then, and i have a little vegan so wow, you are busy. Wouldnt it be great if you had investments that worked as hard as you do . Yeah. Introducing essential portfolios. The automated investing solution that lets you focus on your life. [vo] quickbooks introduces and her mobile wedding business. She travels far and wide to officiate i dos. And quickbooks automatically tracks those miles. She categorizes with a swipe and is ready for tax time. Find more than 4000 in tax savings. Visit quickbooksdotcom. 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Okay. Western digital. This was the stock this is a disk drive and flash based company. The stock was at 85. 50 when the day ended. As the company reported, and as the Conference Call started, it started to tick down. 84, 83. At 1. 82 and change and then they said, you know, in conclusion, we think we can do 12 this fiscal year. People are looking for 8. This is literally 12. This is 50 better and then the stock went up went up 9 bucks in the afterhours. So shame on you. This company, david, also said its in the drivers seat with the toshiba deal you and i talked about. I dont know why they keep saying that or why they believe they are because i hear different. Well, im going to talk to Stephen Milligan tonight, the ceo. 28 billion deal for a 25 billion market cap many, many partners. Theyre going