NEW YORK (TheStreet) -- TheStreet's Jim Cramer says sometimes a company reports such a spectacular quarter that investors want to get out before the insiders do, and that is the case with Facebook (FB).
Cramer says the social media giant reported a number so extraordinary that the stock is cheap based on 2016 numbers. But on the conference call, Facebook went over the number repeatedly and said it would not be able to maintain this level of growth. Furthermore, the company said it is not monetizing some components that analysts expected it to monetize.
Cramer, though, thinks this is a case of under-promising now and over-delivering later, and he does not believe growth is slowing at Facebook; however, the market is speaking loudly about the stock and shows that people do believe it.
Separately, TheStreet Ratings team rates FACEBOOK INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."