This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer: Facebook Rally Not Surprising

That accounts for some of the buying, but surely not all of it given the big percentage move the stock's having, coupled with the hideous action in the stock market overall.

What else is behind the surge? I think there is a sense that after an initial period where Facebook was blindsided by the quick migration of traffic from the desktop to the smart phone, and the concomitantly lower prices for advertisements that mobile gets, management was able to re-adjust and find lucrative ways to capitalize off the trend.

Their strategies have allowed them to improve profitability and better harness and monetize the billion users who have signed up for the site, many of whom access it regularly.

I think Facebook's turned the corner here. Many of the companies I talk and listen to have recently embraced advertising in Facebook, as we just heard from luxury goods purveyor Michael Kors (KORS), as well as from advertisers as varied as Buffalo Wild Wings (BWLD), Domino's (DPZ) and Procter & Gamble (PG). The fact that there's so much buying today tells me I am not alone.

So, do you buy it up here? Everything seems to sell off in this market after a one or two day rally on good news, so you want to be careful after this gain. That said, if you don't own it already, I think you should take the plunge if it comes in.

Yep, today's action tells you the worst is over for Facebook and, perhaps, the best is yet to come.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums


Chart of I:DJI
DOW 17,852.18 +132.26 0.75%
S&P 500 2,096.63 +16.22 0.78%
NASDAQ 5,145.8940 +37.2280 0.73%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs