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Cramer: Facebook Needs to Prove It Cares About Safety

Jim Cramer recently told 'Mad Money' viewers that the social media platform has its uses, but society cannot ignore recent events.

Jim Cramer encouraged investors to think twice about investing with Facebook  (FB) - Get Facebook, Inc. Class A Report until the company can demonstrate that it is prioritizing safety. 

The internet is not a child-friendly place, Cramer said on a recent episode of "Mad Money," and issues like teen depression and suicide must be addressed.  

Facebook needs to prove they care about the safety of their users, Cramer said. He said Facebook continues to be a terrific advertising platform and champion for small business, but he also said society cannot ignore recent events. First, Apple  (AAPL) - Get Apple Inc. (AAPL) Report made it harder for apps like Facebook to track users. And then there are the recent Senate hearings on Facebook's negative impact on teens' self-image which Cramer said "concerns me greatly."

Real Money Columnist Doug Kass recently took advantage of Facebook weakness by trading it short. To find out more about investing ideas from Kass and other Real Money columnists, please click here.

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Cramer said the FAANG companies have remained market leaders because they can change their ways.

FAANG is Cramer’s acronym for Facebook, Amazon  (AMZN) - Get, Inc. Report, Apple, Netflix  (NFLX) - Get Netflix, Inc. (NFLX) Report and Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report

Cramer said the appeal of FAANG has always been the leading companies' willingness to adapt and change. Remember when Netflix mailed DVDs? Now the company streams its own films. Meanwhile, Amazon has evolved from a "nice-to-have" to a post-pandemic essential service.

Apple is always evolving, with new phones and a slew of new services that users can't live without. Google's YouTube has evolved into one of the most important content channels in the world, meanwhile, Microsoft has been able to raise prices on Office365 without much protest, thanks to their continued innovation, Cramer said.

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