Jim Cramer Highlights Meta's AI Investment and Strong Earnings Beat

Meta Platforms, Inc. (NASDAQ:META) is one of the stocks that Jim Cramer spoke about. Cramer considers the company’s earnings “spectacular,” and he commented:

“What should it have been about? Well, how about Microsoft? How about Meta? Nope. They were overshadowed by the Fig-Man Carnival. It was all anyone talked about down here. Call me old-fashioned, but I really wanted the market today to be defined by those earnings reports from two tech titans. I’m talking about Microsoft, briefly a $4 trillion company today, before closing just below that level, and Meta at just under $2 trillion. I wanted these to be foundational…

I wanted it because they smashed estimates. I mean, they crushed them by billions of dollars. These were marvels. They did so because they spent fortunes on artificial intelligence, something which many thought to be foolhardy, but it turns out to be they didn’t spend enough… Meta, which blew the estimates away, kingdom come, sells for less than 29 times earnings. Given how spectacular these reports were, it was natural, totally natural for the stocks to go up… Meta jumping more than 11%…

I say they’re still too cheap, and most national economies are an inflation-binging joke anyway. I’ll take their balance sheets over any country in the whole world. We pay 35 times earnings for Microsoft, 29 times earnings for Meta, because we look at the benchmark, the valuation, the S&P 500, and the aggregate, that sells at 24 times earnings, then we try to assess how much better Microsoft and Meta are than the average stock, and they are really better.”

Meta Platforms, Inc. (NASDAQ:META) develops products across social media, messaging, and immersive technologies. The company’s offerings include Facebook, Instagram, WhatsApp, Messenger, and Threads, and it also builds virtual and augmented reality tools through its Reality Labs division. During the July 15 episode, when a caller inquired about the stock, Cramer replied:

“Yeah, absolutely. I love the fact that it came in. I want stocks to go down a little so we can prevent the kind of situation that we got with BlackRock and present the kind of situation we got with Wells Fargo. Meta’s coming in a little. That is great. The stock is very inexpensive when you back out the cash. Very inexpensive, by the way, if… [it] ever decide to try, I don’t know, billing for WhatsApp. It is a fantastic company, and I’m glad you brought it up to me.”

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Disclosure: None. This article is originally published at Insider Monkey.