Jim Cramer says he would buy Facebook after earnings beat him, but it’s still too early for a ‘winning lap’
CNBC’s Jim Cramer said Thursday that parent company Facebook Meta is a buy after the social media platform beat Wall Street’s earnings expectations in the first quarter.
“While it’s too early to make a win lap here – stocks are still down hard for the year – I feel like Meta Facebook’s recovery efforts are already paying off.” – said the host of “Mad Money”.
“Even after today’s spike, the stock is selling at a ridiculous price of 17 times earnings. Now that the biggest fears have been put aside, I think Facebook is a good profit game and I think it will grow… Potentially if you can get rid of it. “Bad Amazon news tonight, shop now,” he added, referring to Amazon’s lack of profits and gloomy outlook in the latest quarter.
Meta shares soared 17.6% on Thursday.
“The context for Meta Facebook is such that almost no one expected anything good here,” Cramer said, citing obstacles including changes to Apple’s privacy rules, the rise of rival TikTok, and economic factors putting pressure on social media companies’ ad revenue.
Cramer pointed to the rise in Facebook users, arguing that the company is on the rise. According to StreetAccount, the number of daily active users of the social media platform was slightly above the predicted number.
He also said the company’s planned investment slowdown, the success of its Tiktok-rivaling Reels product, and Zuckerberg’s confidence in his social media business make Cramer optimistic about Meta.
“If there’s one thing Zuckerberg knows better than anyone, it’s social media. And the numbers already confirm this,” he said.
Disclosure: Cramer’s Charitable Trust holds shares in Apple, Amazon and Meta.
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