Investing

Cramer: You should watch Facebook shares

Cramer: Keep an eye on Facebook
VIDEO0:3200:32
Cramer: Keep an eye on Facebook

Facebook's rising stock price after a report that the social media giant is seeking music video licensing deals may signal a broader comeback for momentum companies, CNBC's Jim Cramer said Friday.

The report, which appeared in The New York Times on Thursday, said Facebook is talking with recording companies to add a limited number of videos, all of which would be selected by the labels.

"It's funny that this announcement, which I don't think is that needle-moving is getting it going. That's a sign that a lot of people feel that these higher multiple stocks are ready to come back," Cramer said on "Squawk on the Street."

Read MoreFacebook to build $500M data center in Texas

Facebook's shares were up about 1.5 percent Friday morning.

DISCLOSURE: Cramer's trust owned Facebook stock when this article was published.