CNBC’s Jim Cramer said Thursday that Facebook parent Meta is a buy after the social media platform beat Wall Street expectations on earnings in its first quarter.
“While it’s too soon to be doing a victory lap here — the stock’s still down huge for the year — I feel like Meta Facebook’s turnaround efforts are already paying off,” the “Mad Money” host said.
“Even after today’s jump, the stock sells for a ridiculous 17 times earnings. Now that the biggest fears are off the table, I think Facebook’s a good value play and I think it’s going to roll up. … Potentially if you can get it off the Amazon bad news tonight, do some buying,” he added, referring to Amazon’s earnings miss and gloomy forecast in its latest quarter.
Shares of Meta soared 17.6% on Thursday.
“The context for Meta Facebook is that almost no one expected anything good here,” Cramer said, citing headwinds including changes to Apple’s privacy rules, the rise of competitor TikTok and economic factors putting pressure on social media companies’ advertising revenue.
Cramer pointed to Facebook’s user growth to argue that the company is on the up-and-up. The social media platform’s number of daily active users was slightly above the forecasted number, according to StreetAccount.
He also said that the company’s planned slowdown in investments, success of its Tiktok-competing product Reels and Zuckerberg’s confidence in his social media business makes Cramer bullish on Meta.
“If there’s one thing Zuckerberg knows better than anyone, it’s social media. And hey, the numbers are already bearing that out,” he said.
Disclosure: Cramer’s Charitable Trust owns shares of Apple, Amazon and Meta.
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