In a program on CNBC, Jim Cramer talked about Facebook Inc (NASDAQ:FB) and how the company is spending fortunes to make more money in the future. Facebook Inc (NASDAQ:FB) is down by 6% today. The social media giant reported a strong quarter and Mark Zuckerberg looked optimistic in his call for investors. Cramer said that people must think about what exactly they want from Facebook. Many shareholders are looking for buy backs and dividends. Cramer thinks that we must listen to long term plans of Facebook. He quoted Mark Zuckerberg and said that the company is investing in some staggering endeavors. Zuckerberg has claimed that over the next five years, Facebook Inc (NASDAQ:FB) will be getting hold on services that would reach over one billion people around the world. Cramer criticized Twitter Inc (NYSE:TWTR) and said that he is not interested in the company because of its lack of growth and bad market approach.
Facebook Inc (NASDAQ:FB)’s WhatsApp acquisition was only a hint of diverse approach of Mark Zuckerberg. Facebook’s CEO thinks that WhatsApp and Instagram are not complete businesses yet and they have a potential to grow in the future. Many investors would think that if WhatsApp is not a business, then why did Facebook invest 2,000 times of its annual revenue on it. Cramer said that we must look at the bigger picture here, which is, exploiting the potential to open multiple streams of revenue and opportunities in the future.
Cramer compared Facebook Inc (NASDAQ:FB) with Twitter Inc (NYSE:TWTR) and IBM. He thinks that Twitter Inc (NYSE:TWTR)’s management is not impressing investors. They don’t have a long term plan for growth. IBM is also relying on buybacks instead of products and growth, thinks Cramer. He thinks that Facebook Inc (NASDAQ:FB) is a buy and the company’s strategy is worth trusting.
Philippe Laffont‘s Coatue Management owns over 5.8 million shares of Facebook Inc (NASDAQ:FB). John Thaler’s Jat Capital Management owns about 7.33 million shares of Twitter Inc (NYSE:TWTR).
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