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Ariana Baio
Oct 28, 2022
Meta Falls Again
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As Squawk on the Street co-host Jim Cramer knows, when you make a mistake you have to own up to it.
Earlier this year, Cramer told viewers to invest in Meta, Facebook's parent company, believing it had “nowhere else to go but up.”
But on Thursday, Meta's stock fell a whopping 25 percent after they released their Q3 earnings, which showed a poor revenue outlook for Q4.
The stock plummeted to its lowest point since 2016 at $98.21 per share.
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While co-hosting CNBC's Squawk on the Street on Thursday, Cramer appeared teary-eyed while expressing regret to viewers for recommending the stock.
"I made a mistake here, I was wrong," Cramer said with his head down. "I trusted this management team. That was ill-advised. The hubris here is extraordinary, and I apologize.”
\u201c.@jimcramer: I was wrong to trust $META\n\nThe tech giant\u2019s Q3 results disappointed street estimates, sending the stock to its lowest levels since 2016.\u201d— Squawk on the Street (@Squawk on the Street) 1666883564
Since CEO and co-founder Mark Zuckerberg announced a shift in priority toward the Metaverse and VR technology earlier this year, the company has seen a drop in value and interest.
And some Twitter users believe they could have seen the bad call coming given Cramer's reputation.
\u201c@unusual_whales He gets it wrong every week. Why he apologizing for this one instance? Lol\u201d— unusual_whales (@unusual_whales) 1666891151
\u201c@unusual_whales Does bro not realize we always do opposite of what he says?\n\nYou good Jim\u2026just keep making your predictions.\u201d— unusual_whales (@unusual_whales) 1666891151
\u201c@buccocapital What about the 900 other bad calls he made? Why is this one making him so sad? He must have had a large personal position.\u201d— Bucco Capital (@Bucco Capital) 1666887746
Fans of Cramer came to his defense on social media by praising him for admitting he was wrong.
\u201cWatching Jim Cramer have a mental breakdown on live TV is sad. I know Cramer isn't the only one feeling this way. After one of the worst years ever in the #StockMarket, people are starting lose it. Take care of your mental health. Your family needs you.\n\n#MentalHealthMatters\u201d— Scott "Stock" Curry (@Scott "Stock" Curry) 1666929936
\u201c@buccocapital Actually respect this a ton to get on national TV and candidly admit you got it wrong and made a mistake. There's a distinct paucity of these sort of mea culpas in public markets investing so credit to Jim where credit is due.\u201d— Bucco Capital (@Bucco Capital) 1666887746
"I come out here and I try to help people every day, and I failed to help people and I own that," Cramer added. "I did not think the company would be as ill-advised as it's been there what they had."
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