Jim Cramer on Meta: "They Got the Memo"

Meta Platforms, Inc. (NASDAQ:META) is one of the stocks that Jim Cramer shared takes on, along with navigating market shortages. Cramer highlighted the company’s spending plans, as he commented:

Meta Platforms, on the other hand, oh boy, they got the memo. They’re rallying furiously. Social media giant reported a huge earnings beat, very solid revenue beat. Plus, even though they plan to spend $135 billion on their AI build-out this year, management’s confident that they can still grow their operating income year-over-year. In other words, they can afford it. That’s one reason this stock is getting a much-needed boost this evening.

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. Cramer talked about the stock during the January 26 episode and said:

Why don’t we start with Meta Platforms, which saw its stock plunge 11% last time it reported in late October, and it’s now down almost 16% from its August highs. At these levels, Meta is selling for less than 23 times this year’s earnings estimates, making it look pretty darn cheap. But if the stock’s going to turn around, it needs a new catalyst. This time… I expect a great set of numbers from Meta, especially from the core advertising business. But these guys reported strong numbers last time, too, and it didn’t matter because Wall Street only cared that they raised their capital expenditure forecast to fund a massive AI data center build-out.

CFO Susan Li said 2026 CapEx growth would be even more significant than what we saw in 2025, and that just crushed the stock. So when Meta reports on Wednesday, the big question is how much money are we talking about here? If we get a gigantic…capital expenditure

projection, it’s gotta be tough for Meta to rally. But if we get not-terrible guidance on the CapEx front, then maybe the stock could break out of its downtrend. Beyond the spending projections, it sure would be helpful if Meta could explain exactly what it’s getting out of its AI-related investments, of which there are billions of dollars worth.

Now, they’ve made the case that area’s help the core advertising business, and it’s a compelling case, but without a popular generative AI platform or cloud infrastructure division, they don’t have it. The other guys do. It’s harder for people to understand how these investments will pay off for Meta. For instance, can the Meta Ray-Bans, for example, ever become a needle-moving business line? I love mine, but there are a lot of competitive ways to get AI data, including your iPhone.

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