Jim Cramer Sticks With His Big Prediction About Meta Platforms Inc. (META)

We recently published Jim Cramer Discussed These 22 Stocks Including A Hidden Oil & Energy Play. Meta Platforms Inc. (NASDAQ:META) is one of the stocks discussed by Jim Cramer.

Jim Cramer has stuck with social media giant Meta Platforms Inc. (NASDAQ:META) despite the weakness in the firm’s share price. A considerable amount of debate in the market is for the firm’s AI initiatives. Like its mega cap peers Alphabet, Microsoft and Amazon, Meta Platforms Inc. (NASDAQ:META) is also investing billions of dollars in AI compute. However, unlike them, the firm does not have a dedicate cloud computing business – a fact that has caught everyone’s attention. After Cramer and others reported last week that Meta Platforms Inc. (NASDAQ:META) would sell excess compute capacity, the CNBC TV host asserted that the shares should add a hundred points on the news. Since the news broke, the stock has added 86 points, and out of these, 37.7 points are after CEO Mark Zuckerberg confirmed the move. Cramer discussed the share price movement:

“I see Meta wants to put a lot more compute up and the stock is getting crushed today even though it was added to the US 1 list from Bank of America. I mean look at that, remember it went to 600 when we heard that they were going to do a web service. Now it’s back to 581.”

In a tweet, Cramer remarked that he was glad he was optimistic about the firm to his Investing Club members:

“Proud we told club members the change in META model was worth 100 points. It is why it is so hard to leave a Microsoft or an Amazon of a Google. The optionality is insane for these companies even as they take on too much debt. If AI works for them the debt gets paid back very quickly….”

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 the cheapest AI stock.

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