Facebook may have missed the estimates but you should not lose hope on the company.
Facebook Inc(NASDAQ:FB) released its quarterly earnings last week and many experts are skeptical because the company missed the revenue consensus. But Jim Cramer thinks that Facebook is right on the spot and where it should be. In a program, Cramer said that the people who are rushing for selling Facebook Inc(NASDAQ:FB) stock didn’t listen to the conference call. Facebook Inc(NASDAQ:FB)’s revenue missed its estimated because the company is still in the growth process. Facebook is tapping into a diverse range of areas; from content to mobile; ads; entertainment. Cramer thinks that Facebook is building an international cable system which will devise a new ecosystem for the users.
Cramer said that Facebook Inc(NASDAQ:FB) is a great international growth story. This is not a stock one should sell. Facebook Inc(NASDAQ:FB)’s employee numbers are very less when we compare it to other companies which are far smaller than it when it comes to size, growth and potential. Facebook video ads business is growing and Cramer thinks that this is the area company could flourish and beat even the ads juggernauts like Google. Facebook Inc(NASDAQ:FB) mobile ads revenue is 73% of its total ads revenue, which sums up the story.
Cramer said that he doesn’t care ‘a least’ about the fact that Facebook Inc(NASDAQ:FB)’s expenses are higher than the growth numbers in the revenues. He said that WhatsApp is where Facebook should start monetizing because it has 800 million monthly users and Facebook Inc(NASDAQ:FB) should not ignore this service.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).
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