Facebook Inc (FB): Can The Stock Reach $45?

stock price surgeAs Facebook Inc (NASDAQ:FB) opened for trading above the $38 level for the first time since its IPO, CNBC’s Jim Cramer said that the fundamentals for the company are shifting, and the business has entered a “virtuous cycle” in the advertising space.

As one of the largest holdings in Cramer’s charitable trust, he said the investment decision was made because “they have the holy grail. No one can reach these millennials. No one can reach the right demo—so to speak—on the Web except Facebook.”

Cramer praised the company’s nonintrusive advertisements, mobile strategy and a “virtuous cycle” in its numbers, where firms will be motivated to choose Facebook over more traditional advertisement mediums. In comparison, Google‘s strategy of using a programmatic advertising system is less attractive to companies looking to reach targeted demographics, Cramer said on “Squawk on the Street” Wednesday, compared with Facebook’s platform. “I don’t know why, right now, you would go with this programmatic advertising campaign of Google if you can do a targeted advertising campaign,” he said.

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