CNBC host Jim Cramer said investors wanting to buy Meta Platforms Inc. (NASDAQ:FB) stock should wait for the stock to find a bottom as institutional selling is extensive.
What Happened: “Let them ruin the stock one more time. That will be your chance,” Cramer said Thursday on his “Mad Money” show, noting that the selling in the stock won’t necessarily be over in a day.
Cramer said that while the selling in Meta’s stock can be justified following the company’s disappointing quarterly results and outlook, a 26% decline is overdone as Meta has actual earnings and it is not an “ailing company.”
He noted that the Mark Zuckerberg-led company has a war chest of cash and has overcome plenty of obstacles in the past.
See Also: How To Buy Facebook (FB) Stock
Why It Matters: Shares of Meta — formerly known as Facebook — fell more than 26% in Thursday’s regular session after the company reported fourth quarter earnings that missed analysts’ estimates.
Meta also said it expects competition for user time, price growth and the impact of Apple Inc. (NASDAQ:AAPL) changes to iOS policies to be headwinds in the first quarter.
The company lost more than $237 billion in value on Thursday following the plunge in its stock price, CNBC reported.
Price Action: Meta Platforms shares closed 26.4% lower in the regular trading session at $237.76, but rose almost 1.6% in the after-hours session to $241.50.
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