Jim Cramer defends Meta amid AI model delay report
- On May 15, 2025, the stock market saw gains, particularly the S&P 500, which was on track for a five-day winning streak.
- Meta's shares dropped following a report that the launch of its AI model, 'Behemoth', would be delayed.
- Jim Cramer advised against selling Meta shares due to the company's positive prospects and multiple ongoing projects.
On May 15, 2025, the stock market experienced gains, positioning the S&P 500 for a five-day winning streak with expected gains of over 4% for that week, as interest rates began to decline and the 10-year Treasury yield hovered around 4.4%. Jeff Marks, director of portfolio analysis at Jim Cramer's Investing Club, noted that the market is in a dynamic state, subject to constant changes. However, signs of an overbought market indicated a potential for pullback, raising concerns among investors. Meanwhile, Meta Platforms, Inc. saw a drop in share value following a Wall Street Journal report about delays in the rolling out of its AI language model named 'Behemoth'. In contrast, analysts at Loop Capital raised their price target for Meta from $695 to $888, expressing optimism for the company's future performance. Jim Cramer, an influential figure in investment commentary, advised that despite the negative report, the myriad of initiatives and projects at Meta make it unwise to sell shares. Cramer’s conviction stemmed from his belief in the company’s growth potential after analysts' positive revisions for the upcoming quarter, highlighting resilience in a favorable long-term investment strategy. Stocks discussed during an Investing Club meeting featured other companies like Applied Materials, Cava, and Take-Two Interactive. The Club's members receive timely alerts about trades that Cramer makes, but there are no fiduciary obligations linked to this advice.