James Cramer, a well-regarded voice in the stock market advisory sphere, took market watchers by surprise last year. He uncharacteristically displayed emotion on CNBC, expressing remorse to his audience for championing Meta Platforms (NASDAQ: META) as an investment. This came after the tech giant experienced a precipitous drop in its stock value following a series of disappointing earnings results.
Meta’s share price ascended to nearly $400 in 2021. The firm, which rebranded from Facebook to Meta in the same year, pivoted its strategic direction towards a “metaverse” concept centered on a professional virtual reality platform under the vision of CEO Mark Zuckerberg.
Throughout these developments, Cramer was staunchly in Meta’s corner. As recently as June last year, he had bolstered his endorsement, advising CNBC’s viewership to invest in the company post an insightful interview with Zuckerberg on the metaverse proposition.
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However, by the time of his unexpected apology, the landscape had dramatically shifted. Meta’s stocks were valued at a mere $100 on October 28, 2022, a sharp decline from the impressive $330 earlier in that year. This humbling trajectory was reminiscent of valuation figures the company hadn’t witnessed since 2016.
In a poignant reflection, Cramer articulated:
“Let me say this: I made a mistake here. I was wrong. I trusted this management team. That was ill-advised. The hubris here is extraordinary, and I apologize. What did I get wrong?” he said. “I trusted them, not myself. For that I regret. I’ve been in this business for 40 years, and I did a bad job. I’m not proud.”
Meta climbs 270%
Fast-forward to present times, and Meta seems to have regained its momentum. Almost a year post-Cramer’s confession, the stock has surged by approximately 270%, trading at $327.82, marking a gain of 1.86% by the closing bell this Wednesday, October 11.
This commendable rally in Meta’s stock is underscored by the burgeoning AI industry and renewed market appetite.
Furthermore, the broader US stock market sentiment has also been favorable. Meta’s impressive performance in 2023 and the recent 52-week high can largely be credited to the company’s revamped financial health.
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