Jim Cramer Continues To Defend Meta Platforms (META)’s AI Spending

• StockStory Top Pick META +0.85%
• OPAI.PVT

We recently published 13 Stocks That Crossed Jim Cramer’s Radar. Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer discussed.

After Meta Platforms, Inc. (NASDAQ:META)’s latest earnings report created worries about aggressive spending. Cramer took the contrarian view and stressed that the firm is defending itself from a possible encroachment by OpenAI on its moat in the social media industry. Throughout the year, the CNBC TV host has found different reasons to be positive about the firm. Yet, Cramer hasn’t held back from pointing out what he believes are weaknesses. For instance, in January, he remarked that Meta Platforms, Inc. (NASDAQ:META)’s AI platform was a “little more prurient.” Yet, Cramer has also continued to praise the firm’s smart glasses. In this appearance, he reiterated his recent reasons to have faith in the firm. These include what Cramer views as defensive spending against OpenAI and the firm’s CEO, Mark Zuckerberg:

Photo by Timothy Hales Bennett on Unsplash

“The second one, that I think is down a lot, Meta, actually has to spend because it’s worried about OpenAI coming into it.

While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.