CNBC’s Jim Cramer touted the Facebook parent company on Thursday meta platform As a case study in why sometimes it pays to hold underperforming stocks.
“When companies change their stripes, or when they are incredibly well managed, or disciplined, or efficient, or when they invent amazing products and reinvent themselves on the fly, you have to follow their should live together,” Cramer said.
Meta shares soared more than 23% on Thursday, a day after the company reported beat fourth quarter revenue and announced a $40 billion stock buyback.
CEO Mark Zuckerberg on 2023 a “Year of Efficiency” And committed to cutting costs, management lowered its expense outlook for the year.
Investors worried about Meta’s costly investment in Metaverse for months after the tech giant prioritized efficiency, sending its stock plummeting. The stock closed Thursday at nearly $189 a share, more than double its 52-week low of $88 in November.
Cramer, whose charitable Trust Meta, who owns shares, also reminded investors that they should buy and sell stocks in phases rather than making rash, all-or-nothing trading decisions — and that waiting for a bottom is often beneficial.
“When a company is well run, pain often represents a great buying opportunity,” They said.