Jim Cramer Says Investors Should Always Avoid This Trading Strategy

CNBC’s Jim Cramer reminded investors Thursday that they should always follow their thoughts, not their hearts, when betting on stocks, using the latest quarter of Facebook’s parent Meta to prove a point. CEO Mark Zuckerberg “pulled the rabbit out of the hat the day Facebook moved from a board game to a mobile phone game, …

Jim Cramer Says Investors Should Always Avoid This Trading Strategy

CNBC’s Jim Cramer reminded investors Thursday that they should always follow their thoughts, not their hearts, when betting on stocks, using the latest quarter of Facebook’s parent Meta to prove a point.

CEO Mark Zuckerberg “pulled the rabbit out of the hat the day Facebook moved from a board game to a mobile phone game, and then did it again when it bought Instagram and turned it into a social media hub. But this time he couldn’t do it. “, – said the host of “Mad Money”.

“The lesson, of course, is that as compelling as it is to believe in someone—I call it the Great Man Theory of Investing—it almost never works in the long run,” he added.

Meta missed earnings and revenue in the last quarter and posted a mild outlook. The company has struggled to monetize Reels and has noted obstacles related to the war between Russia and Ukraine, persistent inflation and uncertainty about slowing economic growth.

Meta shares have lost about half their value since the beginning of this year.

Although the company’s shares fell even more after a disappointing quarter, Cramer noted that the decline means they are less risky now.

“When no one expects growth and you don’t get growth but you are price disciplined, money can pile up – they have $40 billion in the bank and they bought back $5 billion of stock this quarter alone – stocks tend to receive a pass. ,” he said.

Disclosure: Cramer’s Charitable Trust holds shares in Meta.

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Denial of responsibility

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