Opinions Jim Cramer - Mad Money
Meta Platforms IncMETAWATCHJan 26, 2026
Stock price when the opinion was issued
As of Oct 05, 2026. Market Open.
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In the last quarterly report they beat on numbers and showed strong revenue growth which it's not getting credit for. How to monetize AI is the big issue but it is showing that it can be productive on the AI side. They are seeing clearly the benefits of AI in their advertising business model. The market had undervalued it but it is now trading at a premium. It still can go up if they can execute well.
Buy 72 Hold 6 Sell 1
Paul Harris, CFAHuge fan of it. The consumer will drive the stock, now that they released the Muse AI agent targeting consumers. He is selling covered calls on Meta. Great to see the founder mature into a
Kevin Simpson
One day Google is front of the AI race with Gemini. Now, it's Meta. Next, Anthropic and openAI. What makes Meta different is the AI is purely targeting the consumer. He has a large position and may sell part of it. The CEO is the original founder, which also makes him distinct from its peers. It's near record highs.
The overhang is that, despite good numbers from their ad business and AI's impact, Meta is still spending a lot building data centres--can Meta earn good returns on all those centres? However, Muse shows they can build productive things with AI. Despite the recent rally, he'd still buy it.
They're still generating huge amounts of cash despite all their AI spending. Trades at only 20x PE and down 2% this year after a huge run in 2025. Doesn't know if their paid subscriptions will work or not. But they keep doing things efficiently and ahead of the curve. They get things right without being overly aggressive. Their ad business remains huge.
It reports this week. It fell 11% the last time it reported and is -16% since August's highs. Is selling under 23x PE, cheap, but to turn around it needs a new catalyst. He expects them to report great numbers, especially their core ad business. But last time they reported strong numbers and it didn't matter, because Wall Street only cared that they raised their capex to fund a massive data centre build-out--which crushed the stock. So, when they report, the big question is, How much are they spending? Meta needs to show how their AI spending is paying off?