Facebook (FB) Stock a Sell Despite $6 Billion Investment in India, Says Jim Cramer

Michael LaVere
  • The Street's Jim Cramer called Facebook (FB) stock a sale, despite news of a $6 billion investment into Indian company Reliance Industries.
  • Cramer claimed Facebook had a bad quarter and was not being creative enough to warrant a buying opportunity.

Jim Cramer called Facebook (FB) stock a sell despite the company’s recent investment in India. 

According to a report by the Street, Facebook is planning to invest nearly $6 billion in Jio Platforms, the technology arm of India’s Reliance Industries. The investment into Reliance, owned by Indian billionaire Mukesh Ambani, will give Facebook a ten percent stake in the company and a foothold into India’s rapidly developing digital market. 

Facebook CEO Mark Zuckerberg said of his company’s investment, 

India is a special place for us. We’re also committing to work together on some critical projects that we think are going to open up a lot of opportunities for commerce in India.

Despite news of the investment, analyst Jim Cramer called Facebook stock a sell.

According to Cramer, Facebook is forced to invest in markets such as India to avoid anti-trust laws in the US. 

He said, 

I think they chose to invest where they could invest. I think they’re not allowed to invest due to anti-trust purposes, but if you go to India nobody cares.

He continued, calling Facebook stock a “sale” and said the quarter was “not great” and the company was not being “creative enough.”

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