Jim Cramer is Talking About These 12 Stocks

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Discussing Meta Platforms, Inc. (NASDAQ:META), Cramer remarked on its products and advertising business. Here’s what he said:

“Rates don’t matter all that much to Microsoft or Meta or Google. Neither they nor their clients need to borrow large sums of money so the bond markets are irrelevant to them… You go to Meta, which also has an amazing balance sheet and extraordinary demand for its products. Their AI Ray-Bans are a huge hit, but that’s barely a drop in the ocean because they can make so much money from the targeted advertising business and they will.”

Meta (NASDAQ:META) is a prominent technology company dedicated to creating products that enable users to connect and share across various devices. The company’s financial performance has been strong, largely fueled by the ongoing transition to digital advertising. As the global digital advertising market is projected to grow from $366 billion in 2022 to over $1 trillion by 2030, the company is well-positioned to take advantage of this significant expansion.

User growth has played a crucial role in its success. In the second quarter, the number of individuals engaging with Meta’s suite of social media platforms increased by 7%, reaching 3.27 billion and the ad revenue reached a whopping $38.3 billion.

Additionally, Meta (NASDAQ:META) is advancing its AI initiatives, currently with the development of Llama 4. CEO Mark Zuckerberg has indicated that this upcoming model could set a new standard for the industry when it launches next year. The company is also working to deploy 600,000 GPUs by the end of 2024, which shows a commitment to its long-term AI goals. The company has a strong balance sheet as it reported cash, cash equivalents, and marketable securities totaling $58.08 billion, alongside a free cash flow of $10.90 billion, as of June 30.