NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report are up 0.39% to $121.69 in Wednesday morning trading as the social network prepares to report second-quarter earnings after the market close. 

"It will trade erratically," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning. "The stock is up very, very big."

Cramer believes that Facebook will discuss how both large and small customers like the platform. 

Facebook will also talk about artificial intelligence as well as virtual reality and the potential of its mobile messaging app WhatsApp in 2017, Cramer said.

Based on 2018 numbers, the stock is cheaper than Clorox (CLX), Cramer pointed out. It seems to be trading around 30 times earnings. 

"It's not priced for long-term perfection," he noted.

"It is over-owned," Cramer conceded, but he mentioned that investors will get a headline and trade it, which will knock down the price.

In all, analysts surveyed by Thomson Reuters are looking for adjusted earnings of 82 cents per share on $6.02 billion in revenue. Last year Facebook reported earnings of 50 cents per share on $4.04 billion in revenue for the 2015 second quarter.

(Facebook is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with afree trial.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.

Facebook's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: FB

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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