Cramer says Facebook is a buy after earnings, touts its metaverse ambitions

Published Tue, Oct 26 202112:13 PM EDTUpdated Tue, Oct 26 20214:58 PM EDT

CNBC's Jim Cramer said Tuesday he believes Facebook is a buy in the wake of the social media giant's third-quarter earnings report . On "Squawk on the Street," Cramer suggested he's less interested in the recent release of whistleblower documents — which CEO Mark Zuckerberg contends "paint a false picture" of Facebook — and more focused on the company's earnings and metaverse investments. The metaverse refers to digital universes in which people use different devices to interact with each other in a 3D environment. Facebook plans to invest billions of dollars in its hardware and virtual reality segment to develop its metaverse ambitions. The company, which issued its quarterly results Monday, warned investors that the capital commitments may reduce operating profit in 2021 by roughly $10 billion . "I think we're going to be blown away. I really think that this is going to excite us, it's going to be something new and we're going to be talking about it for a long time," Cramer said of Facebook's metaverse pursuits. He added, "I think Facebook is a buy." In recent weeks, Cramer had adopted a more cautious outlook on Facebook's stock after The Wall Street Journal in mid-September began to report on a series of internal files that showed executives knew about the negative effects of its platform on certain young users. Additional leaked documents have since come out from a number of media organizations, including in recent days . Cramer's comments Tuesday suggest he's possibly grown more confident about Facebook's ability to navigate the situation and continue to succeed financially. The social media titan is still facing scrutiny from lawmakers and regulators worldwide, but hopes to built out its hardware-focused metaverse in a few years. Cramer said he believes it will leave everyone "mesmerized." "There's enterprise and education, I think we're going to see it all. I think [Zuckerberg] wants this to be his legacy," Cramer said. Facebook ended the day 3.9% lower, closing at $315.81 per share. The stock has fallen more than 15% in the past three months, although it remains up about 15% year to date. Disclaimer

In this photo illustration a Facebook logo seen displayed on a smartphone.

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CNBC's Jim Cramer said Tuesday he believes Facebook is a buy in the wake of the social media giant's third-quarter earnings report.