CNBC’s Jim Cramer is urging investors not to panic-sell Meta Platforms Inc. (NASDAQ:META) following multimillion-dollar courtroom defeats, arguing that the tech giant is not the next Big Tobacco and that its heavy artificial intelligence (AI) investments will drive massive future growth.
The ‘Big Tobacco’ Rebuttal
Meta shares tumbled nearly 8% after juries in Los Angeles and New Mexico found the company liable for purposefully designing addictive apps that harmed young users.
The California verdict bypassed the industry’s traditional Section 230 legal shield by treating social media platforms as defective products, drawing heavy comparisons to the historical downfall of Big Tobacco.
Cramer, however, firmly rejects that narrative. “If you decide that you’re going to sell Meta because it looks like this is going to be tobacco, it’s not going to be tobacco,” Cramer stated, according to CNBC. He argued that tech companies have been far more transparent about platform risks than the tobacco industry ever was.
He views the stock’s recent 15% slump in March as a prime buying opportunity rather than a death knell. Investors are “going to regret” selling Meta stock, …
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