Meta Platforms Inc FB appears to be the clear loser of the FAANG stocks this earnings season, while Amazon.com Inc AMZN has emerged as one of the big winners. Jim Cramer highlighted key differences between the two.
In the case of Meta, "there are sellers who are willing to sell below where there are buyers," Cramer said Friday on CNBC's "Squawk On The Street." When it comes to Amazon, buyers are willing to buy at any price.
The key difference between the two is that Meta proved that it's advertising dependent while Amazon showed that it's a transaction-based company, Cramer emphasized.
Meta’s stock plunged by more than 25% Thursday after revealing it will be negatively impacted by Apple Inc's AAPL privacy changes. The company expects the changes to decrease 2022 revenue by approximately $10 billion.
"I think that Meta uniquely had a really good ad business that is just not as good in the new world where we opt out, where it's easy to opt out," Cramer said.
Apple's new transparency feature reduces ad targeting capabilities by limiting advertisers' access to iPhone user identifiers.
Cramer noted Meta has a "secret weapon" in CEO Mark Zuckerberg, who has faced and overcome challenges before. He said Meta also attributed a net loss of $10 billion to metaverse-related investments in 2021.
On the other hand, Amazon is focused on accelerating its existing business segments and the quarter shows the company is doing just that, Cramer said, adding that demand remains strong.
FB, AMZN Price Action: At time of publication, Meta was down 2.08% at $232.75, while Amazon was up 12.4% at $3,119.43.
Photos: courtesy of Amazon and geralt from Pixabay.
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