NEW YORK ( TheStreet) -- Despite its botched initial public offering, Facebook (FB) finally seems to have found its groove. TheStreet's Jim Cramer tells Debra Borchardt what he's doing with his Action Alerts PLUS portfolio winner.
Cramer said that many people disagreed with buying Facebook when he was a big advocate of the company. His cost basis is in the $20s.
Now with the big move above $40 per share, he said it's time to trim the position and reduce risk -- but not sell all of it.
When Facebook first went public, hardly any revenue was from mobile advertising. Now, roughly 40% of revenue is from mobile, a dramatic shift.Because of that, Cramer said the company has a ton of upside potential for future growth. Thus, he wants to stay long the stock. Although the company might have seemed like a "fly-by-night" type at first, it very much has its focus on the future and Cramer added that it reminded him a bit of Google (GOOG) when it first went public. He concluded that with the stock stuck at this level, he wants to take some gains to reduce exposure, but wants to stay long for future moves higher. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell