Jim Cramer is Talking About These 7 Stocks

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

Number of Hedge Fund Holders: 219

Cramer delved into Meta Platforms, Inc.’s (NASDAQ:META) third-quarter earnings report that was released on October 30. Here’s what he had to say about it:

“Meta stock instantly plunged about 20 bucks when it reported because there was no beat and raise lingo. Remember we like that stuff spoon-fed because we’re lazy. I had to bat this one around for a while with the crew because there are puts and takes to the guidance. That’s another technical term, puts and takes… And I still can’t be sure that it should be down so much. It’s coining money for heaven’s sake. Again, hard to pin down. A non-beaten, non raiser that made the numbers.”

Meta (NASDAQ:META) is a global leader in connecting people through a variety of products that allow for sharing and interaction on mobile devices, personal computers, virtual reality headsets, and wearables. The company boasts an audience of 3.29 billion daily active users across its platforms. The majority of its revenue comes from selling advertising space to businesses looking to reach this extensive audience. As users engage more with platforms like Facebook and Instagram, the number of advertisements they encounter increases, driving revenue growth.

In Q3, Meta’s (NASDAQ:META) advertising revenue climbed nearly 19%, totaling $39.9 billion. The company has projected its fourth-quarter revenue between $45 billion and $48 billion. Additionally, a notable rise in capital expenditures is expected in 2025, as CEO Mark Zuckerberg emphasized the importance of investing in artificial intelligence and infrastructure for future growth.

Management mentioned that AI plays a crucial role in boosting user engagement and time spent on its platforms, while also providing tools for advertisers to improve the effectiveness of their campaigns and boost conversion rates. The company highlighted advancements in its Llama large language model, which has seen significant growth in tokens, aiding in AI computations. Training for Llama 4 is currently underway, utilizing a cluster that is bigger than 100,000 H100 graphic processing units.