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Mark Zuckerberg, chief executive officer and founder of Facebook
Facebook’s co-founder and chief executive, Mark Zuckerberg, looks like he has the next five years planned out, and as a result shares of the social network are cheap, CNBC’s Jim Cramer said Thursday.
Facebook stock was up about 5 percent Thursday morning at around $175 per share, a day after the company reported quarterly earnings above Wall Street estimates, boosted by greater advertising revenue for its mobile app. Facebook has been adding more video and display ads to the mobile version of its service as more consumers access the internet via their smartphones.
Cramer was specifically pleased with Zuckerberg’s comments on the earnings conference call about placing ads on the Messenger app. “We just started putting ads on Messenger,” Zuckerberg, who is also Facebook’s chairman, told analysts late Wednesday. “I want to see us move even faster.”
“I am telling you Zuckerberg has the next five years planned out. This is an expensive stock,” Cramer said on “Squawk on the Street” on Thursday.
If Facebook can push to monetize Messenger, it’ll be key to moving its stock to “the next level,” Cramer added. “[Zuckerberg’s] ads are something you want to watch.”
Cramer also addressed Twitter’s stock, which was getting slammed about 10 percent in early Thursday trading after the social media company reported a lower-than-expected 328 million monthly active users in the latest quarter.
However, Cramer defended the results, saying the daily average users were “pretty good,” adding revenue has been going down less and the company’s programming is “looking up.”
Twitter’s latest quarterly earnings and revenue did exceed expectations.
— CNBC’s John Shinal contributed to this report.