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Cramer: Facebook still undervalued, expect 'growth galore'

Cramer: Facebook is still undervalued
Cramer: Facebook is still undervalued

CNBC's Jim Cramer said Monday that although Facebook shares are trading at all-time highs, the stock remains undervalued because of the company's huge growth prospects.

"People are talking about monetizing everything. The love for Facebook now ... is equivalent of the hatred at the $25-26 level," Cramer said. "Let's never forget that the IPO soured people."

(Related: Should investors 'like' Facebook?)

"This stock is now approaching stratospheric levels, but still I think it is undervalued. Why? because people love growth and it is growth galore," he said.

In July, Cramer explained that his bullish outlook on the Facebook is based on the company having found the "holy grail" of advertising, with a unique ability to reach the millennial generation. He added that Facebook is a "must" for large advertisers seeking a global reach and will lead the charge on innovation.

(Read more: Cramer: Facebook holds the 'holy grail' for advertisers)

On Monday, Cramer also expressed optimism that Facebook will develop money-making, non-intrusive ad products on its core platform, as well as on Instagram. So far, Facebook CEO Mark Zuckerberg has "kind of amazed us for being able to develop product that has not turned people off," Cramer added.

Jim Cramer's charitable trust owns shares of Facebook.

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