Jim Cramer Calls Market Decline ‘Man-Made’ and Breaks Down 15 Stocks

10. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 262

While analyzing the Magnificent Seven stocks, Jim Cramer identified Meta Platforms Inc. (NASDAQ:META) as one of the top-tier names in the group. He noted that while a recession or tariff retaliation could impact the company, most of the negatives were already priced in, and its AI initiatives remained underappreciated. Here’s what he said:

“Meta Platforms looks like a relative winner from tariffs because they sell advertising so there’s little direct impact. Now that could change if Meta becomes the target of European tariff retaliation – always a possibility – or if the trade war throws our economy in a recession too, another real possibility.  But with Meta stock now down more than 30% from its highs two months ago I think many of these negatives including a potentially soft advertising market are already baked in. Plus, Meta is not getting enough credit for its AI growth opportunities. Stock sells for just under 20 times this year’s earnings estimate. It sells below the average stock? Not much of a discount to historical valuation but it’s one of the highest quality stories in the formerly Magnificent 7.”

Nightview Capital stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:

“Meta’s platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.

In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.

Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business.

The success of Ray-Ban AI glasses and progress on Project Orion signal Meta’s growing influence in smart wearables, positioning it as a leader in the next wave of consumer technology.

Meta’s unparalleled reach and advertising expertise, combined with AI-driven product innovation, provide a durable competitive moat. As the company continues to optimize monetization and invest in next-generation technologies, it is at the forefront of growth in the evolving digital advertising landscape.”