Despite tremors in its share price, Cramer continues to be lukewarm about Meta Platforms (NASDAQ:META). The shares are down by 8.5% year-to-date and by 16.7% over the past year. One major point of debate surrounding Meta Platforms (NASDAQ:META) relates to its heavy capital expenditure in order to keep up with other mega cap peers. However, while rivals Google, Microsoft and Amazon have cloud computing businesses where they can use their data centers, Meta Platforms (NASDAQ:META) does not. On this front, July was an important month for both Cramer and the firm. The CNBC TV host was among the few to confirm that the social media giant was considering selling excess compute capacity. This decision was later confirmed by Meta Platforms (NASDAQ:META)’s CEO Mark Zuckerberg, and on the day the news was reported, Cramer famously predicted that the stock would gain a hundred points due to the move. However, since July 1st, the stock has gained 31 points. In his Tuesday morning appearance, Cramer commented on Meta Platforms (NASDAQ:META)’s executives being worried about their data center investments in Louisiana:
“You talk to Mark Zuckerberg who’s really smart and he has a brilliant team of people. And they’re worried about Louisiana and the big deal they’re doing with Entergy. Because they’re really smart and they live and breathe that stuff.”
On July 3rd, Meta Platforms (NASDAQ:META) announced that its Louisiana investment would now cross $50 billion and touch five gigawatts of computing capacity. The firm added that the project had led to $1.6 billion in contracts for local businesses in the state. Over the next three years, Meta Platforms (NASDAQ:META) plans to invest $300 billion in US facilities.
Recently, on July 20th, Rothschild Redburn discussed Meta Platforms (NASDAQ:META)’s shares. It raised the share price target to $1,000 from $900 and kept a Buy rating on the stock. The financial firm outlined that the social media company was shifting towards tailoring its AI products to small businesses over consumer use cases. It added that the move could widen Meta Platforms (NASDAQ:META)’s moat in the sector and generate longer-term tailwinds for the firm.
During Q4 2025, 256 out of the 1,041 hedge funds covered by Insider Monkey owned Meta Platforms (NASDAQ:META)’s shares. In Q1, this figure was 262 out of the 1,022 hedge funds. A notable stake belonged to Newlands Management Operations LLC and was worth $5.6 billion. Other notable funds with stakes in Meta Platforms (NASDAQ:META) include Fisher Asset Management and First Eagle Investment Management.
While we acknowledge the potential of META to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about the cheapest AI stock.
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