Jim Cramer Advises Selling Meta Stock After Big Run-Up

Cramer's Contrarian Call on Meta

Financial pundit Jim Cramer has issued a notable recommendation regarding Meta Platforms META, advising investors to consider selling the stock. This advice comes after a significant period of growth for the social media and technology giant, which has seen its shares climb substantially over the past year.

Why Cramer Thinks Meta's Rally is Done

Cramer specifically pointed to the stock's impressive performance, noting it has made a "huge move" and is up a remarkable 70% year-to-date. He suggested selling into this strength, particularly with the stock trading around the $494 level. Unlike other tech leaders like Nvidia NVDA, which he still favors, Cramer believes META is "done going up" for the time being. This view is primarily based on the stock's rapid ascent and potentially reaching a point where its current valuation reflects much of its near-term upside, despite its focus on areas like artificial intelligence (AI) and its status as a "Magnificent Seven" stock with a market cap exceeding $1.2 trillion. The recommendation stands out, especially as broader indices like the S&P 500 ^GSPC and Nasdaq Composite ^IXIC have been trading higher.

What This Means for Investors

Cramer's call presents a point of consideration for investors holding META. While the stock has delivered strong returns, his perspective highlights the potential risks after such a sharp rally. His view suggests that while the company's fundamentals or long-term prospects aren't necessarily in question, the stock price may have outpaced them in the short term. Investors typically weigh such expert opinions against their own research and investment goals.