We recently published 10 Stocks on Jim Cramer’s Radar. Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer recently discussed.
After social media giant Meta Platforms, Inc. (NASDAQ:META)’s shares fell following its latest earnings report, Cramer took the contrarian view and defended the firm’s CEO, Mark Zuckerberg. The CNBC TV host did not hold back when discussing the firm:
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“[After David Faber commented that Cramer was frustrated with the conference call despite Meta’s sizable user base] I thought that the revenues were terrific. The reaction to the conference call is that, finally we’re at the point where people are spending too much. And he is spending too much. People did not like Mark Zuckerberg’s assurance that you have to spend.
“[On what he thought about CapEx growth will be notably larger, CapEx dollar growth will be notably larger in 2026] Okay well, there’s two ways to look at it. One is that at this point, he just says, I’m gonna win no matter what. And I’m going to spend, this is the opposite of the year of efficiency, I’m going to spend, what some people at Mellius said, spend recklessly. I don’t agree with that. I think the crucial moment on the conference call which is completely being overlooked is on page 14. Which is that he’s got to go for very high quality good video, which is doing fantastic for advertisers, but you have to have the highest end NVIDIA to do that.
“Now let’s remember, before we castigate this guy too much, Hock Tan’s on his board. The CEO of Broadcom. You think he’s just, he’s got maybe I think the smartest, toughest investor in this particular element. And then he has, himself obviously. He’s proven, proven, proven. But there’s downgrades, there’s price targets. It’s almost as if people just said you know we’ve been waiting for this guy to trip up and we’re going after him. And then of course he has this charge which was actually from the great big beautiful whatever bill.
“David I want to take the other side and I’ll tell you why I want to take the other side. I’ve not made a lot of money betting against this man when he does these kinds of things. And if we listen to Jensen Huang, Jensen’s always saying, the CEO of NVIDIA, that if you buy ours, it’s something that CoreWeave would verify, if you buy ours, they don’t expire. They continue to be valuable. Also, I think that I would say Zuckerberg has created the cheapest power and some of that is Entergy. They said Jim don’t focus too much on Entergy, our power grid is better than everybody else’s.
“But they’re saying, look, we will be able to use this power. You may not think that we need all this accelerated compute which you know Jensen says is just as good as AI. We’re going to do it. And he is not getting any lattitudes. So David let me ask you, is this the end of spend and get rewarded? Or do we just say you have to justify it much better which is what Alphabet did?
“No we’re telling people to buy. We’re now, look, I think it could go down a hundred, because it’s almost like if you think you’re going to sell it at 75 you’re doing it because you think it’s going to be down a hundred today. Now this was not a down 100 call. This was an actually a fine call where he’s saying maybe you don’t understand the value of an old NVIDIA, maybe, again, Michael Entrator, you know who my back came from CoreWeave, he’s on the same page. He’s on the exact same page as Zuckerberg which is saying look, I need the compute and if I don’t need the compute I’ll still find out a way to make money. That was viewed as very cavalier. I don’t take anything he says as cavalier.
“Microsoft. . .they were constrained, they didn’t have enough compute. Alphabet had the right amount of compute. So what does Zuckerberg say? He says, look, guy, I don’t really care about what Wall Street says, I’m gonna get us the right amount of compute. People don’t like when someone says I don’t care what Wall Street says. Which is the sub rosa of nature.”
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Disclosure: None. This article is originally published at Insider Monkey.
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