NEW YORK (TheStreet) -- Shares of Facebook (FB) were falling nearly 5% on Thursday morning after the company posted better-than-expected results for the 2016 third quarter, but gave a cautious outlook for 2017.

On the conference call, CFO David Wehner said the company expects ad revenue growth rates to "come down meaningfully." Wehner also said 2017 would be an "aggressive" investment year.

"Those three words 'meaningfully, aggressive and substantial' they overshadowed everything, which I think is ridiculous," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

"You saw the stock drop when they talked about a meaningful decline in the rate of the amount of money that's going to come in from advertising, ad load, and they said they have to spend money substantially and aggressively and that just freaked everybody out," Cramer explained.

But Cramer noted that this didn't amount to a guidance cut. "It amounted to them spending money to be able to make it so the user experience is great across a whole host of things," he said.

Cramer contended that the quarter was "remarkable" and the conference call was "unbelievable."

"I'm not backing away from it one bit and I'm not cutting numbers," he added.

"Those three words were fighting words meaning that you should take your 2018 (earnings estimates) down from $7 (per share) to maybe $6.50, maybe to $6.20. I do not think that was correct," Cramer said, noting that was the "knee-jerk reaction" to the conference call.

Cramer also mentioned that when you take the third-quarter in totality, there was revenue growth of 56% to $7 billion year-over-year, 1.8 billion monthly active users and $2.5 billion in free cash flow.

"This is the greatest gross margin, free cash flow story of all time," Cramer contended.

(Facebook is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.

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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins.

Recently, 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 articles's author.

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

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