Jim Cramer on Meta: "Kind of Ridiculously Cheap If You Like the Management as Much as I Do"

Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer recently discussed. Cramer highlighted the company’s increased spending as he commented:

“Meta is interesting. It’s up almost 11% for the year, not much, but better than Amazon. Stock sells for 22 times next year’s earnings. That’s kind of cheap, kind of ridiculously cheap if you like the management as much as I do. But it’s also spending like mad, perhaps as much as a hundred billion dollars next year for capital expense. And I’m not even thinking about these huge pay packages the company’s using. No salary cap in tech. Hey guys, go fix that, will you?…

For that capital spend, Meta’s getting power plants and data centers, both of which could be frankly out of date by the time they’re done. Again, though, they don’t have the choice. If Meta takes its foot off the pedal, then OpenAI might start coming in after them in the social media space… I know the stock of Meta, like many of the tech cohort, hasn’t done anything for months, while stocks in the transports and financials, man, they’re just flying. The only thing that would get Meta stock moving is to come out right now and say, listen, we’re not going to, we’re not going to pay all this. We’re not going to pay all this for power. We’re not going to do all these data centers. And I have no idea how they can do that without losing their edge.”

Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that connect people through social networking and messaging. The company’s portfolio includes Facebook, Instagram, WhatsApp, Messenger, Threads, and products in virtual and augmented reality.

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