Facebook Inc (NASDAQ:FB) has impressed Mad Money host Jim Cramer so much that he has run out of superlatives to describe how good the social media giant is doing in the market. The social networking giant is on a completely different level than every other company, believes Cramer.

Facebook FB Stock

Cramer traces FB’s history

Facebook Inc (NASDAQ:FB) with its more than $350 billion market cap is still able to generate accelerating revenue growth and 58% gross margins. However, at the open of trading on Thursday, shares of the social networking giant initially increased to $128, but they pared gains to $125 by market close. How could this be possible with such a successful quarter?

The Mad Money host said, “We have seen bouts of selling after great quarters before. I suggest you use the weakness to buy the stock, because I can see Facebook Inc (NASDAQ:FB) rolling toward $160 over time, which is where it starts to get classically expensive on an earnings basis.”

Cramer did not stop there. He traced the success of the social network back to when it first became available to the public and did not know what to do. At that time, the tech giant developed amazing ways for users to share content with friends via their desktop computers but did not have much to offer for mobile. Also user growth was dropping.

Facebook Inc (NASDAQ:FB) CEO Mark Zuckerberg then demanded a pivot to mobile and created a product that was better on a phone in comparison to a desktop. Zuckerberg saw the revolution, and the social media giant went from not having mobile exposure to being the best place to post texts and upload videos in only a year’s time. Zuckerberg also understood that video is a priority and a better way for advertisers to connect with their audiences online.

Regrets doubting Facebook (FB)

Cramer, who felt bad for ever doubting the tech giant, said he felt small when he listened to the company’s conference call. He noted that he had fallen prey to those who believe that the social media giant was merely a fad “that competitors can just come in and stomp on out of nowhere. That couldn’t be further from the truth.”

For Cramer, the biggest takeaway was that the social networking site is not just technology but a mobile identity for people. People can probably not live without Facebook Inc (NASDAQ:FB) just as they cannot live without food, he suggested. Thus, Cramer advises investors not to be intimidated by its stock reversal on Thursday. He trusts Zuckerberg, who has earned his trust.

On Thursday, Facebook Inc (NASDAQ:FB) shares closed up 1.35% at $125. Year to date, the stock is up almost 18% while in the last year, it is up almost 29%.

Tags: