Cramer: I Couldn't Recommend Facebook's Stock
NEW YORK (TheStreet) -- Lindsey Bell: Facebook(FB) reported earnings last night. They beat the quarter and mobile revenue, which a lot of analysts look at, surged. Jim, the stock is down about 5% today. What's going on?
Jim Cramer: OK. Well, first, some people were disappointed in the earnings, which are so-called down. I mean, I think, like Amazon(AMZN) , they could show much better earnings but they're spending a fortune.
Lindsey Bell: You know what, a lot of analysts downgraded it today, saying there's going to be margin pressure because they're going to spend. But if you're a growth company, don't you have to spend?
Jim Cramer: Well, this is the dichotomy. I always like to look at it in terms of holders. There are a lot of holders who are expecting, at any given time, a pop, a better-than-expected earnings
Remember, the stock went from $18 to $32 in a straight line. All it is, is back to where it was last week. I don't want to take my cue too much from the stock, but the downgrades were fatuous in the sense that they were people who clearly were upset that the company was going to spend a lot. I don't know anyone who really thought that they wouldn't spend a lot.
My bottom line on this, Lindsey, is if you're a guy who's patient and you believe that stocks have an ability to be valued in 2015, I understand why you would own it. It's not a stock I'm recommending.
Lindsey Bell: OK. Not recommending Facebook here.
Jim Cramer: No.