NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Facebook (FB - Get Report) has run for a while, so people may ask why it is not up even more. He notes the social media giant is generating a huge amount of cash and is an earnings-per-share story.
Cramer thinks the stock could earn $3 in 2016 and deserves a 30 multiple with 50% longer-term growth during that period, which would lift the stock price to $90. So Cramer says investors need to buy Facebook even if the stock does come back down a bit. He believes Facebook will become a core holding for money managers, not unlike Google (GOOGL) or Apple (AAPL).
Cramer says Facebook is not a revenue story or a fly-by-night outfit. It's a cash machine with very good leverage and great operating margins, and he encourages investors to buy it.