Cramer calls a bottom on Facebook's stock after it fell nearly 24% since mid-March
Facebook may have finally reached a bottom after a tumultuous eight months that saw the stock lose nearly a quarter of its value, CNBC’s Jim Cramer said Tuesday.
“I think Facebook, which is an unmitigated disaster, is bottoming,” Cramer said on “Squawk on the Street.” His charitable trust, which still owns Facebook shares, has trimmed the position in recent months.
Facebook shares closed Friday, March 16, at about $ 185, a day before news broke of Cambridge Analytica’s data misuse. Ten days after that, Facebook hit a then-intraday low of around $ 149, which represented a 19 percent decline.
Under scrutiny over data privacy from Washington and Wall Street, Facebook clawed its way to an all-time high during the July 25 trading of over $ 218 per share. But since then, Facebook lost 35 percent as of Monday, firmly in a bear market as defined by an asset or index decline of 20 percent or more from recent highs.
Facebook’s 52-week low on Wall Street was $ 126.85 on Nov. 20.
For months, Cramer has been critical of Facebook and most recently its Chief Operating Officer Sheryl Sandberg, who was reportedly blamed by Facebook co-founder, chairman and CEO Mark Zuckerberg for the company’s problems.
About two weeks ago, Cramer said Facebook’s stock could rise if Sandberg were to resign or be ousted. Then on Friday, after an expose by The New York Times, the “Mad Money” host questioned how Sandberg could possibly stay.
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