More Squawk From Jim Cramer: Buy Facebook (FB) Stock Instead of Line

If investors like Line (LN), they should really love Facebook (FB), Jim Cramer contends.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Japanese social networking firm Line  (LN) - Get Report soared 28% in its market debut this morning, opening trade at $42 per share after pricing its IPO at $32.84 per share.

But the company's advertising strength is the only justification for owning the stock, TheStreet's Jim Cramer contended on CNBC's "Squawk on the Street" this morning.

"This thing better do well on advertising," Cramer noted. "Otherwise it's just going to be another overheated Asian equity."

Line does not have promising monthly pay users or monthly active users, he added.

"When I look at head to head comparison with WhatsApp and Snapchat, you would never buy this thing," Cramer said.

Social media giant Facebook (FB) is worth twice as much as Line, Cramer added. "I caution that if you like Line, you should love Facebook," he said.

Based on 2018 earnings, Facebook is three times cheaper than Clorox (CLX) stock, Cramer mentioned.

"Line is an advertisement for Facebook," he stated.

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