What Would Happen If You Invested $1,000 in Meta Platforms When Jim Cramer Apologized?
Jim Cramer is a television personality who recommends stocks on CNBC.
In Oct 2022, he broke down on air over a stock pick mistake he made, apologizing for recommending Meta Platforms shares based on valuation.
He regretted making the recommendation multiple times in 2022, which was based on trusting the management team, but proved to be wrong.
Cramer previously called the bottom in Meta shares at $190, but the stock was trading like "the whole metaverse thing is just one big joke."
He was not proud of the recommendation and felt he had done a bad job, calling the situation "almost a rogue situation."
Some investors have criticized Cramer's recommendations, with some choosing to do the opposite of what he suggests.
Investors who ignored Cramer's call on Meta Platforms saw a 77.5% return in less than 4 months compared to a 7.7% return in the SPDR S&P 500 ETF Trust.
A new ETF called Inverse Cramer ETF (ticker SJIM) and Long Cramer ETF (ticker LJIM) invests based on Cramer's comments.
It is important for investors to do their own due diligence and invest based on their own ideals and reasons, not based on recommendations of a television personality.