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Cramer: Facebook Is 'Doing the Right Thing'

Thursday's Market Roadmap
Thursday's Market Roadmap

CNBC's Jim Cramer said on "Squawk on the Street" Thursday that Facebook's spending strategy is catered to growth investors and that he was pleased by the company's conference call.

"This is what we want from great American companies," he said. "If you want to win, you do exactly what (CEO Mark) Zuckerberg is talking about."

Cramer said the stock is down after its "tremendous" run-up because investors are selling to lock in profits.

However, he thinks Facebook's strategy is similar to that of Netflix,, and, where the focus is on the long term instead of the short term.

"If you're a growth investor who doesn't care about short term, you're buying Facebook at this level," he said. "They're looking for the next Amazon and they think they have it."

On Thursday, Facebook beat estimates on the top and bottom line for the fourth quarter with strength in mobile, but the stock faced strong selling at the open.

Other stocks Cramer talked about this morning:

Dow Chemical —The company reported a net loss in the fourth quarter due to large restructuring charges and falling sales of specialty plastics and chlorine. "I question Dow's execution," Cramer said, comparing the company to PPG Industries and Dupont which are performing better in the chemicals space. "This acquisition they made, I still think it's hurting. If PPG is doing so well, why isn't Dow doing better? It's a great company but I expected a blowout here and they didn't get it," he said.

UPS —The shipping and logistics company saw earnings and revenue fall short of expectations, although earnings per share rose compared to a year ago. "Federal Express is doing much better," Cramer said. "I wonder if the TNT acquisition distracted management, and that acquisition failed. UPS is a great company, I don't want to sell it, but I also question execution of UPS" compared with its peers.

Blackberry/Research in Motion — After the company released the Blackberry 10 on Wednesday, Cramer said: "I'm looking at the phone and I'm thinking if they had this phone out a year ago, the stock would be at $30. I think it might be too late. It's just not enough."

—By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from Squawk on the Street @ToscanoPaul

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