Cramer's Morning Take: Meta Platforms 4/27/23

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (0:08)

Let's jump to Meta. You'd see the stock up more than 10% right now.

Jim Cramer (0:12)

It's a big position, and we've... Look, I think the reason... There's a lot of misinformation about Meta. What happened is this.

Mark Zuckerberg decided to focus on AI in order to get around the Apple blockage, so that to increase engagement. What had happened after Apple was you were checking seven times, there were only two new posts. So that meant that it was a mistake to check, therefore the advertisers weren't getting what they want. They've now done Reels, brought Instagram back, real good growth there, 21% increase in engagement. Why? AI to get around Apple. So this is very serious.

Do they need to cut metaverse spending there? Of course, but that's not the point.

Accelerating revenue with headcount reductions equals explosion in earnings. Give it a 20 multiple, it still goes higher.

Jeff Marks (1:00)

Yeah, that's very big. It's that year of efficiency meets accelerated revenues, AI doing so much of them, engagement, monetization.

Jim Cramer (1:08)

TikTok, look out. Reels just doubled, a couple billion in six months. One of the more exciting things, when we look at what Zuckerberg's doing, I am kind of stunned at the ratio of advertising.

Three dollars in, one dollar in, three dollars out. Nobody has that, so look at all the rest of media. No one has that data. He has data. I know for every business I'm in, I immediately checked everybody. You got to flood this.

No one has it. Google's two for us, one in, two out.

Jeff Marks (1:45)

Yeah, well, and we also know that a lot of big consumer brands are investing even more right now in their market expand. We saw that from Procter & Gamble when they reported they upped their marketing.

Jim Cramer (1:56)

Everyone's in Pepsi as well. Same, all spending more, and they're spending more on Insta, okay?

Three billion people global, 200 million in the US. There's only 340 million people in this damn country.

Jeff Marks (2:12)

So Jim, the stock's about doubled year to date.

Don't sell. The stock's hanging on.

Jim Cramer (2:20)

Look, when it gets to 25, it will be over by then. It's not. We have accelerated revenue, and we got another round of cuts. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning meetings every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (2:41)

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