Mad Money’s Jim Cramer Apologizes for Being Wrong About Facebook Parent Meta After Stock Plunges – Featured Bitcoin News

Jim Cramer of Mad Money has apologized after his stock dropped to a new record. “I made a mistake here. I was wrong,” he said emotionally after stating previously that Meta was a good investment. “I failed to help people. And I own that.”

Jim Cramer’s Apology About Meta: ‘I Was Wrong’

The host of CNBC’s Mad Money show, Jim Cramer, apologized to investors Thursday for recommending Facebook parent Meta Platforms Inc. (Nasdaq: META) after the stock kept tanking following the company’s Q3 earnings release. Cramer, who was formerly a hedge fund manager, co-founded Thestreet.com which is a website that provides financial news and literacy.

Cramer appeared emotionally on CNBC Market Alert and admitted that he was wrong about Meta stock. He had previously stated that the social media company would make a good investment. Cramer said that:

Here, I was wrong. This was my mistake. This management team was trustworthy. This was foolish. This is a remarkable example of hubris, for which I am sorry.

When asked what he got wrong about his previous advice, Cramer replied: “I believed that there was a recognition that there is an amount that you can’t spend … I trusted them, not myself. That is something I regret. I’ve been in this business for 40 years and I did a bad job. I’m not proud.” He added: “I did believe that there would be some discipline … I expected discipline.”

The Mad Money host reiterated that his goal is to “try to help people every day,” noting:

I didn’t help them. That is my own fault. Am I close enough to the company? My belief was that they would not spend what they have without any discipline.

Cramer also tweeted Thursday: “Meta bought back $6.5 billion as free cash flow dropped off the face of the earth. It was not something that I expected. I trusted this management and that was ill-advised.”

He detailed in another tweet: “It is Ford v. Facebook. Ford recognizes that it isn’t ready to produce the best Driverless and wants to spend the money elsewhere and be frugal. Facebook doesn’t speak of frugality. It is almost too late for META to be sold. But it is a seething monster of spending.”

META shares ended at $97.94, down more than 71% since the beginning of this year.

This wouldn’t be the first time Cramer has made a wrong call about a stock. Earlier this month, Tuttle Capital Management filed for two exchange-traded funds (ETFs) with the Securities and Exchange Commission (SEC) — the Inverse Cramer ETF and the Long Cramer ETF. Mad Money hosted a series of August recommendations to investors that they avoid investing in crypto or other speculative assets.

Meta CEO Mark Zuckerberg’s wealth has also shrunk by over $100 billion from its peak a year ago. The Bloomberg Billionaires Index shows that the 38-year old now has $38.1 billion net worth, which is a significant drop from the peak of $142 Billion in September 2013.

The company’s Q3 revenue fell 4.5% from a year ago, the second consecutive quarterly drop, after never posting declining sales prior to 2022. Reality Labs’ metaverse division, which is responsible for the rising costs of social media platforms, threatens to make it more expensive.

Zuckerberg, however, has increased his focus on the metaverse. “I get that a lot of people might disagree with this investment,” the Meta CEO said, calling it “fundamentally important to the future.” He added: “I think we’re going to resolve each of these things over different periods of time, and I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded.”

Do you agree with Jim Cramer’s apology to Meta, the parent of Facebook? Comment below to let us know your thoughts.

Kevin Helms

Kevin, a student of Austrian Economics and a Bitcoin evangelist since 2011, was one of the first to discover Bitcoin. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.