Jim Cramer has decided to upgrade Meta Platforms — choosing to view Thursday’s post-earnings stock plunge as a buying opportunity. Meta shares were dropping 12% after the social media giant on Wednesday evening warned of spending increases this year and next to stay ahead in the artificial intelligence race. The Club is bumping Meta stock up to our buy-equivalent 1 rating — a move under consideration after the earnings release, when we opted to reiterate our $825-per-share price target. During Thursday’s Morning Meeting , Jim said members should feel free to buy the Meta dip. But he urged would-be buyers to wait until Friday, giving the stock a chance to settle out. Jim attributed the decline to investor rejection of Meta CEO Mark Zuckerberg ‘s argument to spend more to front-load AI capacity. “It’s the way he said it. He said, ‘Trust me, it’s good. Even if I buy too much, it’s fine.’ That did not sit well with Wall Street.” Zuckerberg said on the earnings call that any excess computing capacity can be used in other parts of the business. A large part of the spending will be going toward Meta’s ability to produce “very high-quality good video,” Jim said, giving advertisers more creative tools. “It will help increase the amount of content inventory that can be shown in Instagram and Facebook — and, therefore, should enable an increase in engagement.” That dynamic will be “fantastic for advertisers” and for Meta since it makes most of its money from digital ads, Jim added. Earlier Thursday, Jim knocked down concerns about Zuckerberg “spending recklessly,” saying he likes the CEO’s “I’m gonna win no matter what” mentality. “I have not made a lot of money betting against his man,” Jim added. Aside from the spending and expense worries, Meta did deliver better than expected quarterly revenue and a beat on adjusted earnings per share. The print was messy, though, because Meta took a one-time tax charge of nearly $16 billion to implement new rules in President Donald Trump ‘s One Big Beautiful Bill Act. Meta also raised its current quarter revenue guidance. META YTD mountain Meta Platforms YTD (Jim Cramer’s Charitable Trust is long META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Jim Cramer says buy the Meta plunge — but timing is key
