. ♪ ♪ >> please welcome chief executive officer of amazon web services andy jassy. >> narrator: andy and sparking innovation throughout the economy. >> look at what a.w.s. has enabled with regard to change in our society. look at, netflix changed the way that we consume digital content, and airbnb changed the way that we get accommodations, and hola and grab and lyft and uber changed the way that we get transportation. a.w.s. has enabled, has been a part of enabling all these huge innovations and changes in consumer experiences that have, have made life better for people. >> and we're the cloud with the most capabilities, the most innovation, the most customers. >> narrator: the division generated $35 billion in sales last year. >> amazon web services. >> yes! >> build on. >> narrator: the success of a.w.s. gave bezos billions to expand amazon from a company that sells everything to a company that does everything. a top priority... >> to boldly go where no man has gone before. >> narrator: ...was to create the sci- future he'd fallen in love with as a child. >> gentlemen, this comput

and the issues around your employees you were not doing your job >> i also spauk to amazon ceo andy jassyfs in the midst of the holiday shopping season. i asked him what he's seeing from consumers right now >> it's very clear the consumer -- they're spending, but they're being careful about trying to stretch their dollar so we spent a lot of time having millions of deals available for black friday and cyber monday and people care a lot about getting the bargain right now, and they were attracted to stocking stuffers in a more pervasive way than normal. in discretionary categories like computers or electronics or tvs. you see people trading down in models just to try to get more for their money. >> then immediate talk and i was joined by netflix co-ceo reed hastings after disney announced bob iger was returning to lead the company. hastings tweeted i'd been hope iger would run for president and he's amazing and i asked hastings about the competition with disney now that iger is back >> i was ready to be a fund-raiser for him. i think he'd be an amazing hard to win the democratic primary, b

out from the information this morning saying that amazon is planning a standalone sports app as andy jassyn prime video. is t this is so interesting because the sports rights are so valuable and we've seen san continue to make investments there. but that is one reason that google and meta have lost their total dominance of the ad space there. where do you see amazon and the digital video and potential sports app playing into the potential landscape? >> my colleague covers amazon and so i'd have to defer to him on amazon specifically but broadly speaking, sports rights have been one of the last kind of bastions that linear television has been hanging on to and i think as that moves more and more digital and we're starting to see that happen, we saw google just bid for the sunday package, so that is really important i think that that will be a core strategy across the board for digital players in bringing sports rights on and that can accelerate the shift away from cable -- linear television viewer ship, cutting the cord, to digital streamers >> certainly seeing a shift in ad dollars from tr

gone from the darling to a company in free fall those facts will not change a any time soon unless andy jassythings. it is not just you can cut a bunch of employees and your numbers look different there are facts on the ground that amazon has to deal with that will be a struggle >> speaking of the down draft we have seen, one of the victims in the year in valuations has been cathie wood and ark invest many have seen tremendous losses over the course of the year as some of the big disruptive stocks have fallen out of favor. do you think those will become story lines to the up side in the coming year or is the headlines still there? >> that is what cathie has been saying there is logic to it when the fed moderates its stance, you have the companies that suffered the most the tech companies, especially the high growth tech companies they stand in line to gain from the benefits of the switch the question is, again, when does that switch happen? does it happen next yquarter? deep into next year? we don't know. the fed is determined to get the inflation story under control. so far, all of the data

. >> well, that was andy jassy speaking at the dealbook summit. >>> you can see walt disney was down for the month of november after warning of the joutlook an the change of ceo bob iger coming back. a lot of questions of the future profitability of the streaming service given how much the company is spending in operating expenses to get the service up and running. bob iger should have one eye on the white house according to one sdplchlt >> i was ready to be a fund-raiser for him. he would be an amazing leader for the country. i think highly of him. the other was darn chapek was very good and disciplined. 25-year disney guy it is not like we saw any cracks >>> speaking of the white house. emmanuel macron reportedly described the inflation reduction act as super aggressive telling u.s. lawmakers the subsidies would have negative repercussions with europe. macron is expected to have more harsh words when he meets president biden. charlotte joins us with more tell busus about the state visit >> it is the first dinner by the biden administration they know emmanuel macron is a strong man

when andy jassy and amazon are considering cuts? does that change your view?isa: very modestly, because i think that certainly does that help marginally and the decimal points on margin? sure, but i'm not sure it is going to make up for what we think is going to be material loss of momentum from loss of volume and pricing. jonathan: interesting. absolutely brilliant. tom, throughout 2022, guiding us through a messy market. tom: it is not a small matter. we make light of asset allocation and we have cliches like 60/40, but what is there is the marginal reallocation. not maybe every quarter, but every year. it matters in terms of the long-term return. jonathan: heavy headwinds to come. mornings for morgan stanley. tom: the gloom is out there. two quarters in a row. jonathan: doesn't make a difference, brammo? this all comes down to the timing. morgan stanley would be the first to admit that. they are working -- looking for a slowdown. does this slowdown get pushed out or brought forward? lisa: pushed out. that is my hunch. a stone the incoming information if the

one, the first is doordash, a lot of tech companies, janet yellen said yesterday, andy jassy saying they't regret hiring because there was such a boom in the pandemic but to the second point, if twitter is successful, they're cutting fifty% of the workforce, it they successfully come out of this, doesn't it show the inefficiencies across the board, because if they can do it, why shouldn't everyone else? >> perhaps, and they have that billion dollar debt bill to pay which helps the cause for wanting to cut thank you. >>> let's dive back into our cloud week coverage. no surprise, the software sector has takeb a big hit this year. shares of vmware are holding on to gains up more than 4% on the year 7% for the month after shareholders approved its $61 billion takeover from chip giant broadcom joining us for more on the company, the ceo ragu raghuram tell me how you're seeing customer demand shift. talking more about moves toward consumption based models how is vmware weathering that? >> yeah, so this has been something that we have been doing or seeing our customers do for the last couple ye

to 23, all of these companies are being hesitant and eventually those cuts will have to come >> andy jassy of amazon has been asked several times the last couple of weeks whether he regrets that buildout and he sort of sliced it up a bit, right? he talked about the hardware and the infrastructure warehouse element and the labor, you could have been more discerning, but i wonder you think that view colors their hiring plans over the next five to ten years are they going to be more careful next time? >> i don't think jassy has many regrets. if you do a layoff, you will say i made some mistakes i shouldn't have and amazon will hire 150,000 people through the holiday season and they are seeing some shifts and it's not as big as it used to be and we've had the biggest cyber monday that they've had in history and they want to win that way and there will be these labor contracts for sure, but the slowdown and with amazon i still see them putting their foot on the gas pedal. >> external dynamics, work from home, and san francisco, for example, have changes and do you think that is right now? >> co

i will tell you this, amazon is run by a guy named andy jassy and i think he's going to rationalize thele of employment and make it to l. so the revenues are not going to be exceeded by the expenses so i think buying amazon here is a lot better idea than selling it that's my advice some covid stocks deserve to be in the doghouse but some are making exciting comebacks and got some room to run especially i think etsy. and to buy right now is pinterest. much more "mad money" including one we haven't had on before i'm finding out the real story from the company ceo then i read last night's conference call out of gamestop and i have one word to describe it i'll tell you what, i'll reveal it when we get to it and then we've got your calls, rap ifd-fire tonight "lightning round." so stay with cramer. with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity ♪♪ energy demands are rising. and the effects are being felt everywhe

. >> you lost me dealing with a covid group of people >> andy jassy added workers. >> hundreds of thousands it was a heufrg spree the likes of which we have never really seen >> i'm looking at a piece from two days ago reducing estimates and price targets. it is still a buffet buy >> give me a break buffet i read that to my staff and they mean buffet like a circus circus it's fabulous. amazon is in trouble now they are not in trouble financially. >> revenues to expenses. >> they all are. that's right >> they are eating oysters >> and productivity, by the way, is down at many of these companies. people aren't really working on fridays. >> they're not working on fridays. >> they're not working on fridays. >> i have a study that shows they're playing call of duty on friday >> you have a survey >> yeah. i actually do. >> you do? i would like to see that no, you're right so is 2023 going to be the year where cost discipline is -- >> the ceo of meta zuckerberg is the ceo of meta has said one thing over and over again, which is it's time to get the revenues and the expenses matched correctly. >> a

take time also, sports rights remain in demand i didn't know if you knew that >> the nfl look, andy jassyh on the nfl >> they are negative on advertising. so is -- >> amazon. >> yeah, and so is mr. moffett >> doesn't this make you say that maybe jeff bezos's batten down the hatches comment is like the hurricane comment from jamie? another rich person telling us to be very worried >> i suppose how are you supposed to juxtapose comments like that with a print of 263,000 and wage growth of 5.1% year over year. >> if guidance was bad, first bad guidance, next quarter is not guidance and that's -- by the way, i would say probably 70% of tech, bad guidance so the next quarter, they are trying to say, listen, we're okay but they're wrong. there's only a handful that really have made the pivot to profitability. okta did palo alto networks did but that's -- i mean, that's it. what do you got there? >> i'm just looking. >> we're on air. >> i know, we times i get important texts. it's the way i learn things sometimes when i can't talk to people because i'm speaking to you. >> that's when you -- >> y

think the nlrb is an objective for the organization i ask because you were there i interviewed andy jassybout unions and he has been sued by the nlrb for comments he made abouting with d working directly and effectively said do you think the nlrb will rule against the nlrb. i thought there is a lot of truth there. what do you think? >> that doesn't make sense the nlrb is there to enforce the labor laws exist the labor law is not sufficient enough they have been violating the law. founded violating the law. they had to stand out and read from the law and the statement from the nlrb to the employees last week. so, they have not been following and the reason that union busting is illegal is because it works. it works to keep workers from having the free choice to screen join a union and collect tively bargain. that has led to capitalism we have to have the check for workers to exercise the ability. i think shareholders and people should be happy to see union contracts are being reached because that means it is going to stabilize the unstable labor market that means there will be a long-term

andy jassy is having a tough time turning this around but there's that anticipation of a bounceback next some of these tech names will come right back. >> you wonder where was the -- was the pandemic premium just irrational and is this more rational does it really go back to any of those things that probably weren't real in the first place with all the easy money? i don't know what -- i don't know what fair value is? >> there's two years of extuberance. if you listen to the intels of the world, people are going to be upgrading their pcs every year for forever that's not happening the pc market is probably going to shrink next year. same with smartphones. flat to down this year, probably flat to down again next year. we're seeing demand fall too >> i would stay with this beat, steve. don't go into rust belt stuff -- >> i would stick with tech good idea. >> plastics. >> plastics. >>> when we come back, we're going to speak with the head of the trade association that represents some of the top manufacturer's of children's pain and fever medications lots of areas of the country seeing shorta

we were talking to andy jassy last week and he was saying, people are buying crazy big tvs, they're stilly're just buying -- >> there's no question that any consumer -- every consumer business is affected by what's going on right now but i think what's different is that sports has so much secular growth and i think that is probably the one thing -- >> second derif vative problem r you. it's not that the sales are down, it's the sales growth might be moderating slightly. >> we were into the year thinking -- we went into this year thinking logistics would be more challenge and when the government stopped giving away free money, the comps would get more complicated there were no surprises for us this year. >> i wonder how that plays out in the gaming industry it's a huge industry, there's a lot of competition there we watch it in our business too. people who are day trading have a lot of excess cash sitting around during the day were willing to that money in the ma. almost in a gambling sort of mentality. >> gaming is more of a recession-resistant than other businesses so, i just think if we