Cramer Backs Meta and Shopify After 24% and 46% Drops

5 articles · Updated · The Motley Fool · May 15

Meta has fallen 24% from its high and Shopify 46%, but Jim Cramer said the selloff has created attractive entry points in two AI-linked stocks he views as undervalued.
Wall Street broadly supports that view: Meta's median analyst target is $817.50, implying 36% upside from about $600, while Shopify's $150 median target implies 55% upside from roughly $97.
Meta's decline reflects investor unease over up to $145 billion in 2026 capital spending on AI, even after first-quarter revenue rose 33% to $56.3 billion and GAAP earnings jumped 62% to $10.44 a share.
Shopify's drop followed soft full-year guidance, despite first-quarter revenue rising 34% to $3.1 billion and adjusted net income climbing 44%; management also said AI-driven traffic to Shopify stores increased 8x year over year.
The bullish case rests on AI becoming a larger profit driver—through Meta's ad and recommendation systems and Shopify's agentic-commerce tools—as both companies try to turn recent market skepticism into longer-term growth.

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