Jim Cramer Believes Meta Stock “Belongs Higher”

Meta Platforms, Inc. (NASDAQ:META) was on Jim Cramer’s Mad Money game plan for the week ahead. Discussing the recent layoff announcement from the company, Cramer said:

People freaked out when Meta announced a 10% layoff this week. I think that’s stupid. Mark Zuckerberg lets people go when they aren’t needed anymore. I call him the chainsaw because he’s ruthless about cutting costs. Chainsaw’s stock should have gone higher today, not lower, as Block’s stock did when Jack Dorsey did huge layoffs. This stock’s going in the wrong direction… belongs higher.

Photo by Alexander Shatov on Unsplash

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 virtual and augmented reality products. Montaka Global Investments stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2026 investor letter:

The strength of an investment opportunity depends on the price at which you can acquire current and future earnings power. We see many instances today of strong competitive advantages being offered by the market at highly-attractive prices. Based on Montaka’s internal assessments, here are several:

Meta Platforms, Inc. (NASDAQ:META) — Towards the end of March, Meta’s stock price hit US$526 per share, a level that implies an enterprise value (EV) multiple of less than 13x 2026 earnings before interest and tax (EBIT). We assess this valuation multiple is far too low for a business growing revenues faster than 20% per annum and with competitive advantages as strong as Meta’s.

While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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