CNBC’s Jim Cramer apologized on air Thursday for previously encouraging viewers to purchase stock in Meta last June.
Over the last month, the Facebook parent company’s stock has plunged from $138.61 on Oct. 3 — the first day of trading this month — to just over $98 on Thursday. Their revenue has also decreased this third quarter.
“I made a mistake here. I was wrong. I trusted this management team. That was ill-advised. The hubris here is extraordinary and I apologize,” he said.
“OK,” responded co-host David Faber.
As Cramer continued his apology, he became emotional, breaking down after he was asked by Faber what he got wrong about his previous advice.
“I trusted them, not myself,” he said. “I’ve been in this business for 40 years and I did a bad job.”
Cramer also reiterated his goal of being on TV is to “try to help people every day. I’m not proud.”
“And I failed to help people. And I own that. And was I too close to the company? I did not think the company would be as ill-advised as to spend through what they had without any discipline whatsoever.”
As his other co-host tried to ease his guilt, stating that he wasn’t the only one to be wrong about Metal, Cramer replied, “I don’t really care about that. I f—ed up.”
The second consecutive drop in Meta revenue equates to 4.5% less than a year ago, and the company has not reported dropping sales before 2022. After two straight quarters of declining revenue, the last three months of the year point to a similar trend as traced by analysts.
This year alone, stock has plummeted 61%. Facebook’s parent company has seen a fall in market value by $677 billion in 2022 as well, which removes it from the ranks of the 20 largest United States companies.
“I think we’re going to resolve each of these things over different periods of time,” Meta CEO Mark Zuckerberg said Wednesday. “And I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded.”
Meta’s shares opened 25% lower Thursday in New York, with a stock price of $100 — its lowest since 2016.