Cramer: Facebook Is Fastest Growing Big-Cap Stock in America

Tickers in this article: FB

It's playing out exactly as it is supposed to play out. The companies that are riding the big growth themes go higher. The companies that help themselves with aggressive buybacks and big dividend boosts go higher. The companies that sit there, the ones that don't get busy living, are getting busy dying.

Let's take Facebook (FB). The simple fact of Facebook is that it is the fastest-growing big-cap stock in America and that's because it is surfing the fastest-growing themes in the country, and the world: social, mobile, the cloud and, let's add another, connectivity.

This is a company that owns the young-person demographic all over the world that has a product that works best when on the go. It is the modern way, other than Google ( GOOG), for advertisers to connect with potential buyers. It ends that old saw about advertising -- you know, 50% of advertising works. I just wish I knew which 50%. Here, it is 100% of advertising that works, which is why Facebook might end up being the greatest advertising vehicle of all time. It can be used for branding, it can be used for direct marketing, it can be used locally and nationally to a preselected audience that wants the product and the audience is the right demographic, meaning that it is reached before people really make up their minds and get set in their ways and become too hard to sway.

It is a company that has accelerating revenue growth and, even as its expenses are sky high, the revenues are far outstripping those expenses, which is why it has such amazing gross margins (what's left over after the cost of everything that goes into the product).

Oh, and get this. Remember that growth managers don't look at near-term earnings, they look at long-term projections, they look at the out years and this stock is incredibly cheap based on 2016 and 2017 projections. In fact, given that we have to judge a company's price-to-earnings multiple on its growth rate, one could argue that it could go up 50% and still not be as expensive as the average growth stock.

Of course, this is a day made for the social the mobile and the cloud, hence the incredible numbers from ServiceNow (NOW) and Concur ( CNQR), two cloud-based companies. This is the theme for this time, the one I start "Get Rich Carefully" with, so people can understand the valuations and recognize at least why these stocks are being bought, even if they can't bring themselves to pull the trigger. I first learned of Concur, which I am talking to tonight, when I was out at DreamForce, the Salesforce.com ( CRM) convention of all things cloud. Oh, no wonder Salesforce.com is up 5%. It is at the epicenter of the revolution.