Jim Cramer Makes Spectacular Call on Facebook (FB) Ahead of IPO

May 21, 2012 4:11 PM EDT
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Making potentially one of the best calls on Facebook (Nasdaq: FB) recently was stock guru Jim Cramer.

During last Thursday's Mad Money, Cramer told viewers getting in at the offering price was okay (if possible), but to avoid buying shares in the open market. He then noted investors should sell the stock in the aftermarket, feeling uneasy about holding onto it.

Crames considered several challenges for Facebook: companies may question whether advertising on Facebook works better than traditional media, the rich valuation on the company, the inclusion of Facebook in a group of social media companies which have produced losses for aftermarket buyers, and no dividend protection.

That call is looking pretty good Monday; Facebook shares ended about 10 percent lower.

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