Shares of Facebook parent Meta fell nearly 3% Wednesday following news that Sheryl Sandberg is leaving the social media giant after a remarkable 14-year career. But we believe the pullback presents a great buying opportunity for investors. While we will miss the leadership of Sandberg — the company’s chief operating officer and No. 2 to CEO and co-founder Mark Zuckerberg — it doesn’t change our investment thesis. We are happy with the direction of the company under Zuckerberg, and remain highly encouraged about the recent improvements made to Reels, its rival to TikTok. And the company’s investment in building out the “Metaverse” is a smart long-term bet. Here’s what Jim Cramer wrote about Facebook recently: Metaverse is closer to Reels triumphing over TikTok without having to play the China card, which would actually resonate with the Street but not the customers. They just want whatever attracts the biggest audience. Here’s what matters: Facebook is now valued as a less-than-stellar retailer or even a second-rate materials company or an amalgam like 3M. To me that makes Facebook the buy it has become. As of Wednesday’s close, Meta shares traded at less than 16 times forward earnings — a valuation that indicates to us that a lot of bad news is already priced in. Therefore, we currently have a 1 rating on the stock. This means we believe shares are attractive at the current price level and we would look to add to our position when it makes sense with our average cost basis and current size. Javier Olivan, the company’s chief growth officer, will take over as COO this fall. Sandberg, who informed Zuckerberg of her decision this past weekend and announced in a lengthy Facebook post Wednesday , will continue to serve on Meta’s board of directors. Facebook’s name change to Meta (FB) will be complete with a new ticker symbol on June 9: “META.” (Jim Cramer’s Charitable Trust is long FB. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CEO of Facebook Mark Zuckerberg walks with COO of Facebook Sheryl Sandberg after a session at the Allen & Company Sun Valley Conference on July 08, 2021 in Sun Valley, Idaho.
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