Meta Platforms' Valuation Multiple Still Low, Cramer Says

Jim Cramer believes Meta Platforms, Inc. (META) has a low earnings multiple despite its 2025 share price gains, attributing its performance to its advertising business and cost-cutting efforts. He praises the firm's low valuation multiple and its potential for growth in the advertising business. However, Cramer expresses skepticism about Meta's AI business execution. He also mentions his desire for smart glasses that can translate languages.

Jim Cramer, a prominent financial analyst, recently highlighted Meta Platforms, Inc. (META) for its low earnings multiple despite significant share price gains in 2025. Cramer attributes this performance to the company's strong advertising business and cost-cutting efforts. He praises Meta's low valuation multiple and its potential for growth in the advertising sector. However, Cramer expresses skepticism about Meta's AI business execution and mentions his interest in smart glasses with language translation capabilities.

Meta Platforms, Inc. (META) has been a subject of interest due to its significant revenue growth and market capitalization. In the second quarter of 2025, the company reported a 16% increase in revenue compared to the same period in 2024 [1]. The company's advertising business, which generates approximately $166 billion annually, has been a key driver of this growth [2]. Meta's investments in AI have improved ad targeting and increased ad spending, contributing to its revenue growth [2].

Despite the positive performance in the advertising sector, Cramer remains skeptical about Meta's AI business execution. He believes that while AI has the potential to revolutionize the advertising industry, Meta's execution in this area has been lackluster. Cramer's skepticism is likely influenced by reports that Meta's AI tools are not yet fully automated and that the company has not yet realized the full potential of AI in its advertising business [2].

In addition to its AI skepticism, Cramer also expressed interest in smart glasses with language translation capabilities. He believes that such technology could be a game-changer in the tech industry and could potentially be a significant growth opportunity for Meta. However, Cramer did not provide any specific details about Meta's plans or progress in this area.

In conclusion, Meta Platforms, Inc. (META) has shown strong performance in the advertising sector, with significant revenue growth and a low earnings multiple. However, Cramer's skepticism about Meta's AI business execution and his interest in smart glasses with language translation capabilities suggest that there may be opportunities for the company to improve and grow in these areas. As Meta continues to invest in AI and explore new technologies, investors will be watching closely to see how the company performs in these areas.

References:
[1] https://finance.yahoo.com/news/meta-platforms-meta-surpassed-investor-114656525.html
[2] https://www.investing.com/analysis/meta-and-autonomous-advertising-the-stocks-next-big-tailwind-200663569