The best way to bet on Facebook is to simply wait for its initial public offering and try to get a piece of the deal, Cramer said Friday. For those who can’t wait until May, though, the “Mad Money” host has endorsed just one “non-Facebook play on the Facebook deal” – Morgan Stanley, the lead underwriter on the Facebook IPO.
The Facebook IPO is just one example of what Morgan Stanley is doing right lately, Cramer said. The New York-based financial holding company has been the lead underwriter on other notable IPOs recently, including Groupon, LinkedIn and Zynga . It commanded a 20 percent market share of Internet IPOs on U.S. exchanges and also led among all U.S. deals with 13 percent share.
More importantly, good news matters to the stock, Cramer continued. Brokers were left for dead last year, as investors were concerned about Europe’s sovereign debt crisis. The short-sellers tried killing MS, in particular, on rumors the company had massive exposure to Europe. All of it proved to be untrue, though and MS rallied on news of the Facebook IPO.