We recently published Jim Cramer Discussed These 12 Stocks & Wondered Whether He Should Melt Silver. Meta Platforms, Inc. (NASDAQ:META) is one of the stocks that Jim Cramer discussed.
Meta Platforms, Inc. (NASDAQ:META)’s shares are up by 1.2% over the past year and by 8.6% year-to-date. The firm’s fourth quarter earnings report created quite a bit of a stir on Wall Street as it led to several analysts sharing their thoughts. For instance, Barclays bumped the share price target to $800 from $770 and kept an Overweight rating on the shares. The bank commented that Meta Platforms, Inc. (NASDAQ:META) was leading in the advertising space, and its AI strengths appeared to be assuaging investor worries about high capital expenditures. Similarly, Evercore also raised the share price target to $900 from $875 and kept an Outperform rating. As per Evercore, the social media company’s fourth-quarter revenue and first-quarter guidance were among the drivers of share price following its earnings report. Meta Platforms, Inc. (NASDAQ:META)’s earnings also led to Cantor Fitzgerald raising the share price target. The financial firm bumped the target up to a hefty $860 from $750 and kept an Overweight rating. As for Cramer, the CNBC TV host was vindicated for his faith in the company after the third quarter earnings, following which he had taken the contrarian view and insisted that Meta Platforms, Inc. (NASDAQ:META) was aggressively spending in order to ensure OpenAI did not encroach on the firm’s social media moat. Naturally, Cramer had a lot to say after the latest earnings report:
“First company, other than NVIDIA, where I just say, you know what, AI, they are really monetizing it and doing it in a way that is just is incredible. For things like reels, where they’re getting a lot more engagement. Engagement being the key word here. People are very excited about looking at the ads. And remember, they have three billion people, okay. Little more than three billion. And it’s working. If you want to advertise, and you are saying consumer product company, I want to give a check to Mark Zuckerberg. I’m gonna have really big ROI myself and so is he.
“And he’s gonna make more. And he has figured out how to have AI make AI. This was tour de force call, it was very straight forward. We did a note last night for the club, and I just said, this has got to be up a hundred. I mean cause even Reality Labs, even the glasses may have a pay off. . .by the way they did hire a lot of big, expensive talent.
“It was just the kind of call, like where Jensen would say, we’re in the industrial revolution, and when we give a dollar to someone for AI, it’s explosive. This was the most justifiable call in terms of what’s going on with AI that I’ve heard, Carl. And it cheered me, because this was the company that had been spending the most and getting the least. Well, uh uh, not anymore.
“Who else says, listen the next quarter is going to be explosive? I’ve not heard that from anybody. I’ve heard a lot of people say, listen things are going to be good, but the next quarter is going to be unbelievable? I mean what is he doing, worldwide, he is getting to everybody, and people love it. He talked about Facebook numbers being great, it was a terrific call.
“I don’t want to spend too much time on Meta, but you almost feel like you have to, because what you think when you got this is this that, you know what, all along what was supposed to happen, is this that we should have agentic, we have agents doing our work, we adore our work, it turns out the agentics are doing it really well, it’s only getting better with Vera Rubin, that’s the next generation NVIDIA, and wow, I mean, up 65, uh uh, more. Because if you spend more on AI, you make even more.”
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.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center