CNBC’s Jim Cramer tapped Facebook’s parent company on Thursday meta platform As a case study of why holding depressed stocks sometimes pays off.
“When a company changes stripes, or is incredibly well-managed, or disciplined, or efficient, or invents a great product and reinvents it on the fly, you give them You should stick to it.
Meta’s shares soared more than 23% on Thursday, a day after the company outperformed its fourth quarter earnings and announced a $40 billion share buyback.
CEO Mark Zuckerberg has also called 2023 the “Year of Efficiency” and is working to cut costs, with management lowering its cost outlook for this year.
The tech giant’s prioritization of efficiency came after investors worried for months about Meta’s expensive investment in the metaverse, sending its stock price plummeting. The stock closed at about $189 on Thursday, more than doubling from his 52-week low of about $88 in November.
Cramer, whose Charitable Trust owns shares in Meta, also reminded investors that they should buy and sell shares in stages rather than making hasty all-or-nothing trading decisions, and wait for a bottom. It reminded me that things are often rewarding.
“When a company is doing well, the pain is often a great buying opportunity,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares of Meta Platform.
