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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