rtmark
LearnBonds.com

Facebook Inc (FB) Made a ‘Moron’ Out of Jim Cramer

Facebook Inc, Netflix Inc are still a buy despite market

Facebook Inc made a ‘moron’ out of Jim Cramer. At least that’s what the “Mad Money” host said after seeing its latest quarterly earnings.

The social network posted third quarter earnings and revenue that both topped Wall Street expectations.  Monthly active users also came in better than expected, surpassing the 1.5 billion as of September 30.

Facebook Inc, Netflix Inc are still a buy despite market

And the stellar results left Jim Cramer flabbergasted. He has been a vocal critic of Facebook Inc ’s spending spree. In fact, Cramer once publicly ridiculed Mark Zuckerberg for agreeing to pay $19 billion for WhatsApp, calling the deal grossly overvalued. WhatsApp now has 900 million users!

Cramer Got it Wrong

“Call me a moron, but I was simply taking my cue from the headline writers and the bears, never a wise sign,” Jim Cramer acknowledged yesterday on CNBC.

Cramer still hears the Facebook Inc bears grumbling about its investment spending. But he thinks that’s simply because they just don’t see the rationale behind the deals.

One headline that especially struck Cramer was The Wall Street Journal’s “Facebook Earnings Rise Despite Higher Costs.” Wrong he says. Facebook earnings rose because of those higher costs.

“Facebook is pretty much unstoppable right now and might stay that way for years to come with its investments in Instagram and WhatsApp,” he noted.

So what does he think about the stock’s medium term outlook?

“Facebook will go to $120 a share,” he said. But cautioned investors against chasing the stock. “Wait for a pullback.”

FANG is Alive and Kicking

What about Cramer’s famous quartet of FANG?

“FANG is flying because these stocks represent the best we have in a market that has turned very mixed,” Cramer said.

Facebook Inc , Amazon, Netflix and Google are all crushing their rivals. And what unites them all? They are taking over our lives, and no one seems to be complaining.

Facebook Surpasses GE in Market Value

Facebook’s stock shot up post earnings on Thursday, closing at $108.76, for a total market cap of $306 billion. In the process, the news age tech giant surpassed General Electric’s valuation.

The jump in Facebook Inc ’s value is significant in the sense that it underlines the waning influence of industrials in the U.S. economy. Wall Street has firmly moved on to the digital age. Interestingly, Exxon Mobil and Berkshire are the only two blue chip industrials left in the list of U.S. firms with a market cap greater than $300 billion.

Apple, Google Inc and Microsoft are the most valuable firms in the country. Earlier in the week, Amazon preceded Facebook in joining this mega-cap club after the Seattle retailer topped $300 billion in value.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar