Jim Cramer delivered one of his most enthusiastic endorsements yet for Meta Platforms after the company’s fourth-quarter results, declaring that Mark Zuckerberg has unlocked a self-reinforcing AI engine: the technology is now generating its own improvements while simultaneously supercharging advertising revenue across 3.5 billion daily users, creating what Cramer called the clearest monetization story in AI outside of NVIDIA.
Cramer’s Spotlight on Meta’s AI Flywheel On CNBC’s Mad Money, Cramer described Meta’s earnings call as a “tour de force” and the most compelling justification for heavy AI spending he has heard since NVIDIA’s industrial-revolution narrative. He highlighted Zuckerberg’s ability to turn AI investment into immediate returns through smarter ad targeting, higher engagement on Reels and feeds, and a rapidly improving recommendation engine.
Cramer noted that Meta is the first company besides NVIDIA where he sees AI not just as a cost center but as a direct revenue accelerator. “If you want to advertise and you’re a consumer-product company, you want to give a check to Mark Zuckerberg,” he said. “I’m gonna have really big ROI myself and so is he.”
The veteran host went further, crediting Zuckerberg with solving the elusive “AI makes AI” puzzle. By feeding AI-driven performance gains back into the system—more revenue funds more GPUs, more data, and better models—Meta has created a virtuous cycle that Cramer believes will accelerate dramatically in 2026.
Q4 and Full-Year 2025 Results That Backed the Bull Case Meta delivered record numbers that silenced many skeptics about its AI spending spree:
Q4 revenue: $59.9 billion, +24% year-over-year
Full-year 2025 revenue: approximately $201 billion, +22%
Q4 ad revenue: $58.1 billion, +24%
Daily active users across Family of Apps: more than 3.5 billion
Impression growth reached 18%, while average price per ad rose 6%, driven almost entirely by AI-powered improvements in targeting and creative optimization. Zuckerberg pointed to the integration of large language models with Meta’s world-class recommendation systems as the key differentiator, calling today’s systems “primitive” compared to what is coming.
2026 Capital Expenditure Guidance Signals Full Commitment Meta guided 2026 capital expenditures to $115–135 billion—nearly double the $72 billion spent in 2025. The increase will fund expanded Meta Superintelligence Labs efforts, additional data-center capacity, and a massive GPU build-out. Wall Street analysts responded by raising price targets: Barclays to $800, Evercore to $900, and Cantor Fitzgerald to $860, all citing confidence that AI is already paying off in the core advertising business.
How Meta Is Making AI Generate More AI Zuckerberg outlined several concrete mechanisms during the call:
AI agents already delivering measurable value — Internal tools and external Meta AI features are automating workflows, reducing costs, and freeing engineering resources to focus on next-generation models.
Merging LLMs with recommendation engines — This fusion is dramatically improving ad relevance and feed engagement, which in turn generates more user data to train even better models.
Personal superintelligence roadmap — Meta’s vision centers on AI that understands individual user context (history, interests, relationships), creating uniquely sticky experiences that competitors cannot easily replicate.
Rapid model iteration cycle — Zuckerberg signaled that new models arriving in the coming months will demonstrate a steep improvement trajectory, with steady frontier-pushing releases throughout 2026.
The result is a feedback loop: better AI → stronger ad performance → higher revenue → larger training budgets → even better AI.
Stock Reaction and Market Context META shares have shown volatility in early 2026 but remain up modestly year-to-date following the earnings beat. The market appears increasingly comfortable with Meta’s willingness to outspend peers on AI infrastructure, viewing the advertising engine as a reliable cash cow that can fund the build-out without compromising margins long term.
Key Financial Highlights (2025)
| Metric | Q4 2025 | Full Year 2025 | YoY Growth |
|---|---|---|---|
| Total Revenue | $59.9B | ~$201B | +24% / +22% |
| Ad Revenue | $58.1B | ~$196B | +24% |
| Daily Active Users (FoA) | 3.5B+ | — | Steady growth |
| Capital Expenditures | — | $72B | — |
| 2026 Capex Guidance | — | $115–135B | ~Double |
Disclaimer This is a news report based on publicly available information and analyst commentary. It is not investment advice, a recommendation to buy or sell any security, nor a solicitation. Stock prices fluctuate and past performance does not guarantee future results. Always conduct your own due diligence.