Jim Cramer Explains Why He Thinks Meta Has “More Room to Run”

Meta Platforms, Inc. (NASDAQ:META) was among the stocks Jim Cramer commented on as he advised investors on how to take advantage of Wednesday's market rotation. Cramer highlighted the stock's recent rally and the reason behind it, as he stated:

Let's start with one of the Mag Seven stocks. Let's start with Meta Platforms. Last night, I told you that Meta could make a fortune simply by announcing it would rent out its extra computing power via a cloud infrastructure business like Amazon Web Services or Microsoft's Azure. Today, Bloomberg said Meta's doing precisely that, and the company confirmed it to me. Now, previously I said this move could be worth $100 per share. Today alone, Meta has already rallied nearly $50. And you know what? I think it's got more room to run because their cloud business will be instantly profitable.

I don't know if Meta needs to do an equity offering to pay for more of its data center build-out; I don't. That said, it has countless potential clients, and it can snare big business, something it needs because, see, right now, Meta is too much of a consumer-oriented advertising company. The enterprise-oriented cloud infrastructure game represents a much better, less episodic business model. Now, that'll cause Meta's incredibly low price-to-earnings multiple to expand, and the stock will rise proportionally, or in the Street terms, raising numbers Meta.

Photo by Alexander Shatov on Unsplash

Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that connect people through social networking and messaging. The company's portfolio includes Facebook, Instagram, WhatsApp, Messenger, Threads, and virtual and augmented reality products.

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