A CNBC stock market analyst made a tearful admission of fault in a Thursday “Squawk on the Street” segment, taking responsibility for his own poor advice to purchase Meta stock.
Jim Cramer grew emotional as he admitted that he was previously “wrong” about the stock’s prospects.
The company formerly known as Facebook saw its stock price nosedive by nearly 25 percent on Thursday, according to CBS News.
“I made a mistake here. I was wrong,” Cramer frankly admitted.
“I trusted this management team. That was ill-advised. … And I apologize.”
.@jimcramer: I was wrong to trust $META
The tech giant’s Q3 results disappointed street estimates, sending the stock to its lowest levels since 2016. pic.twitter.com/Eg5d8q1XTv
— Squawk on the Street (@SquawkStreet) October 27, 2022
“I’ve been in this business for 40 years and I did a bad job,” Cramer added. “I am not proud.”
Cramer recommended that stock buyers purchase Meta stock in June.
At the time, Cramer defended CEO Mark Zuckerberg’s plans to invest heavily in what he calls the “Metaverse,” a project intended to create a new generation of social communities in a virtual world.
The project has been intensely criticized, with one Microsoft executive likening the Metaverse to a poorly made video game.
Phil Spencer at WSJ Live on the metaverse:
“Today it’s a poorly built video game. Building a metaverse that’s like a living room is not how I want to spend my time. What I see in the metaverse world is that we’re at the early stage and this will evolve.”
— Tom Warren (@tomwarren) October 26, 2022
Meta stock was down from $156.27 when Cramer touted it in June to $99.20 when he made his contrite admission of error.
Cramer identified excessive spending as a fatal flaw in Meta’s business plan.
“I did not think the company would be as ill-advised as to spend through what they had without any discipline whatsoever,” the host said.
Investors have criticized Cramer, the host of CNBC’s “Mad Money,” for faulty predictions before.
Some of his critics have even gone so far as to propose an “Inverse Cramer” exchange-traded fund, in which stock buyers would invest in the opposite of Cramer’s stock picks, according to Nasdaq.
This article appeared originally on The Western Journal.