We recently compiled a list of the Jim Cramer Talked About These 16 Stocks. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against the other stocks Jim Cramer was talking about.
Jim Cramer, host of Mad Money, shared his thoughts on the market’s reaction to the election results. He noted that the trading session on November 6 was largely influenced by a collective sigh of relief from traders who were glad the election was over. With President-elect Donald Trump set to take office, many were preparing for the shifts his administration could bring. Cramer pointed out that the market responded positively to Trump’s victory, stating:
“The market likes Donald J. Trump and it loves a peaceful transition to the next president. We got both and we had a monster-buying celebration. It was a bull jailbreak and the bears never knew what trampled them.”
Cramer reflected on the uncertainty leading up to the election, with many investors fearing a prolonged and contentious process. But with the winner now clear, Cramer argued that the market is better off knowing what lies ahead. He remarked:
“Let’s understand that many people thought we’d have a contested election, which would cause tremendous uncertainty. The fact that we already know the winner is a huge win for the stock market in itself, which makes it a magnet for new money. This election, with its vicious maelstrom of hate and fear, is finally over.”
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One of Cramer’s main focuses was Trump’s proposed tax cuts, which he believes will have a substantial impact on corporate profits. Cramer emphasized that the tax cuts are expected to boost earnings, particularly by lowering corporate tax rates, which would directly increase profit estimates and earnings per share. Cramer also highlighted the importance of maintaining low interest rates for these benefits to materialize.
He cautioned that while the current environment might feel like a party, there could be risks down the line, especially as debt continues to grow. Despite these concerns, Cramer seemed optimistic, suggesting that the market could continue to rally as long as interest rates stay low and corporate tax cuts come to fruition.
However, Cramer also pointed out a potential complication and commented:
“We also have to accept that we will have another earning season right at the time of the inauguration. So we’ll have to worry about those earnings too, but not yet.”
Additionally, Cramer suggested that there could be more significant market moves in the near future, especially if President-elect Trump makes comments about the Federal Reserve that investors find unsettling. He said that such remarks could trigger a negative reaction from the market, potentially leading to a downturn before things settle again.
Our Methodology
For this article, we compiled a list of 16 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 6 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of developers working in unison to create the company’s messaging application.
Meta Platforms, Inc. (NASDAQ:META)
Cramer highlighted the chatter around a conflict between Meta Platforms, Inc.’s (NASDAQ:META) Mark Zuckerberg and President-elect Trump and said:
“Big Tech got a real boost, especially the ones that have been hectored by antitrust like Alphabet or Amazon or, or frankly even Apple and maybe even, we thought maybe Nvidia and Meta… I’d also buy Meta here. There’s all sorts of bogus scuttlebutt about how the President-elect and Mark Zuckerberg don’t get along. I think that’s the old days, people. I believe things have gotten better between the two and you should think more about the fundamentals now, which are fabulous… Look, there’s some common ground between the two. It was silly that the stock wasn’t up as much, but people were worried about the two of them being angry at each other.”
Meta (NASDAQ:META), a global leader in digital connectivity has a massive audience of 3.29 billion daily active users across its platforms. It has become a dominant force in shaping how people communicate and share information online.
After the 2016 U.S. elections, Facebook faced criticism for its role in undermining American democracy. Critics argued that the platform’s algorithmic News Feed promoted hyperpartisan content, fake news, and disinformation, including materials seeded by Russian operatives. This was later confirmed by the U.S. Director of National Intelligence, who declassified a report in January 2017 detailing Russia’s interference.
Initially, its executives, including Mark Zuckerberg, dismissed these concerns, with Zuckerberg even calling it “pretty crazy” to suggest that fake news on the platform had influenced the election. However, within 10 months, Zuckerberg acknowledged his earlier comments as dismissive and expressed regret.
The company’s involvement in the political sphere continued into the 2020 U.S. presidential election. President-elect Donald Trump’s critique was included in his “Save America” coffee table book, where he threatened legal action against Zuckerberg, stating that if the company engaged in any illegal activity during the 2020 election, Zuckerberg could face lifelong prison time. However, after Trump’s recent victory in the election, Meta’s (NASDAQ:META) Zuckerberg publicly congratulated him, expressing optimism for future collaboration with his administration.
Overall META ranks 13th on our list of the stocks Jim Cramer was talking about. While we acknowledge the potential of META as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.