Jim Cramer on Meta: “It’s Being Clubbed Like a Baby Seal”

Jim Cramer on Meta: “It’s Being Clubbed Like a Baby Seal” Syeda Seirut Javed Sun, May 3, 2026 at 10:51 PM GMT+7 3 min read META Meta Platforms, Inc. (NASDAQ:META) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer highlighted why the stock is declining, as he commented:

Finally, how about Meta Platforms? Oh man, this one really bothered me. It’s being clubbed like a baby seal… Down more than 8% today. It’s a shame because the company really did report a good set of numbers: 33% revenue growth, big beat, 62% earnings per share growth, which was much higher than expected. But ultimately, the investors focused on a couple of negatives that are real negative. First, Meta’s family daily active people, their term for users, missed expectations, actually, shrank versus the previous quarter. Okay, look, they blamed the outages in Iran, blockages in Russia, but that was a cold comfort to shareholders. I don’t like blame. On top of that, Meta raised its full-year CapEx outlook by $10 billion, taking it to a range of $125 to $145 billion, for what, blaming the increase on higher component prices, especially for memory and data storage.

We saw a lot of those companies report in the last 24 hours, and they’re making too much money. But what can you do? It’s capitalism. I think Meta simply just didn’t do a good job of justifying their AI spending… It sure feels like Meta is suffering from the lack of cloud infrastructure business, though, something that’s been printing money for Alphabet, is good for Amazon, and Microsoft’s good, too. It’s very easy to explain how building data centers can make this kind of business more lucrative. Now, Meta would tell you that their spending is working too, pointing to how their AI tools are boosting the core advertising business…