Jim Cramer's Action Alerts PLUS Review - The Inside Scoop on Stock Picks

Facebook has perhaps the best business model of all time, Jim Cramer said. That's Facebook," the " Mad Money " host said.

Thus, Cramer was shocked when investors sold the stock of Facebook on Thursday. He considers the social network to be a very rare company with incredible prospects, with a fairly low stock valuation compared to most other stocks. What makes Facebook unique is that the users cover the cost of the quality content. Typically, content can cost a significant amount of money to develop. In this case, Facebook simply distributes it and makes money from it.

In fact, the more content the users create, the more the advertisers want it. The biggest issue Facebook faces, according to Cramer, is if they have enough salespeople to handle the business.

Jim Cramer's Mad Money | I will post stock picks from Jim Cramer's Mad Money Show on CNBC that I think are good picks.

It also had 64 percent increase in gross margins, meaning, how much it made after the cost of goods sold. Advertises love it because of the engagement, with 1. Cramer suspects that investors refuse to pay up for it because they don't think the business model is sustainable based on ad spending. They also worry that Facebook raised its forecast on how much it will spend, and that the company is "some hippy-dippy outfit run by dreamers. Apple was once viewed as a one-product company, and therefore assumed to be worth less than what it sells for now.

It turns out there was a lot more revenue away from the device, and Cramer expects the same from Facebook. Cramer also wasn't worried about Facebook's spending, because it's simply spending to meet demand, which is a high-quality problem. Additionally, Facebook management is always the smartest in the room.

They know where the company is headed, and they are ready to execute.

Facebook Is an 'Inexpensive Growth Stock': More Squawk From Jim Cramer - TheStreet

Go dump one of the greatest stories of all time. I don't give a darn," Cramer said. Want to take a deep dive into Cramer's world? Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine. Asia Europe Stocks Commodities Currencies Bonds Funds ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Money Specials Shows Video Top Video Latest Video U.

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