Jim Cramer: Don't Sell Meta Over Litigation Risk
Jim Cramer and Bank of America argue investors should not sell Meta Platforms stock solely because of mounting litigation over allegations the company fostered addictive behavior in children. Bank of America maintained a buy rating and an $810 price target, citing Meta’s valuation and growing AI capabilities. Meta is facing a federal trial brought by 29 state attorneys general in Oakland that could lead to billions in damages or remedies affecting Facebook and Instagram, though some claims have already been dismissed and juries’ findings are advisory to judges. Other firms, such as Mizuho, warn the case could mirror Big Tobacco and result in tens of billions in fines. The article also notes Meta’s ad-driven revenue mix and the company exploring selling excess cloud compute capacity.
- •Bank of America maintained a buy rating on Meta and kept a $810 price target.
- •Meta is facing a federal lawsuit brought by 29 state attorneys general; a bellwether trial is underway in an Oakland court.
- •Meta shares were down about 26% year-to-date in 2026 at the time of publication.
