Cramer Says Meta Is “One Hated Stock” As Company Settles Lawsuit

AJ Tiarsmith

Wed, August 26, 2026 at 5:38 PM GMT+3 4 min read

Quick Read

Meta (META) settled a 29-state lawsuit for roughly $16.7 billion, a sum that ranks among tech's largest-ever AG settlements, yet shares barely moved at the open.
Projected 2026 capex of up to $145 billion, not the settled lawsuit, represents the real overhang investors are pricing into META shares.
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Meta settled a case this morning that management had flagged as potentially material, and the stock barely moved. Twenty-nine state attorneys general dropped their federal trial in Oakland after roughly a week and a half of testimony in exchange for a payment reported by Reuters, Forbes and BNN Bloomberg at $16.68 billion, one of the largest state-AG settlements ever extracted from a technology company. By 10:25 a.m. ET, Meta (NASDAQ:META) was changing hands at $570.04, a fraction of a cent below Tuesday's $570.05 close. Jim Cramer, posting live on X, called it "one hated stock.. i mean like despised.". The market was still open as this went to press.

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What The 29 States Alleged

The complaint accused Meta of designing Instagram and Facebook to be addictive to young users, misrepresenting platform safety, and unlawfully collecting data from children under 13 in violation of the federal Children's Online Privacy Protection Act. California, Colorado, New Jersey and Kentucky served as lead plaintiffs. The federal trial opened around Aug. 17 to 18 before U.S. District Judge Yvonne Gonzalez Rogers and was in its second week when the two sides reached terms. Meta denied wrongdoing, and the agreement reportedly requires all parties to waive appeal rights once final judgment is entered.

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Settlement Size Remains Unclear

Reported totals range from NBC's "up to $16 billion" to Variety's "up to $18 billion," with CNBC, Quartz and Yahoo Finance at $16.7 billion and CBS at $17 billion. The recurring "up to" phrasing suggests a structure with contingencies rather than a single lump sum. The settlement also carries operational strings: daily time caps for teen users on Facebook and Instagram, overnight usage restrictions, enhanced age-verification systems, and expanded parental controls.

Cramer's Take

At 9:27 a.m. ET, Cramer posted: "Meta was looking at a trillion; betting like was $200 billion and big restrictions: final is $12.6b and no onerous restrictions". Mainstream reporting does not support that early read. The $12.6 billion figure sits well below major outlets' numbers, and the operational restrictions are onerous by any fair reading.

Twenty-six minutes later, at 9:53 a.m., Cramer wrote: "Meta goes negative: this is one hated stock.. i mean like despised. The big existential loss is off the table; the plaintiffs bar likely to fold.. This was a huge win. Shocked it doesn't matter". A minute after: "It is important to note that when Meta doesn't react to something they will owe $1.3 Billion a year--drop in the bucket--instead of $100 billion a year--and it doesn't matter, that stock is considered odious". The reference to an annual figure hints at a multi-year payment structure, explaining the varying totals in press coverage.

Why "Hated" Fits

Meta is down 13.49% year to date and down 24.08% over the past year, trading at roughly 21 times trailing earnings even as advertising revenue grew 27% year over year last quarter. The stock rose 4.85% in the week ending Aug. 25, but that move preceded this morning's settlement. The actual overhang is the combination of $130 to $145 billion in 2026 capital expenditures and a Q2 free-cash-flow figure of $784 million.

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What Remains Unresolved

This deal does not touch the roughly 3,000 consolidated federal cases in MDL-3047, which also name Snap, Alphabet and ByteDance and are scheduled for school-district bellwether trials around February 2027. A separate state trial in Nashville has been running since July 2026 and continues. Cramer's forecast that the plaintiffs bar is "likely to fold" remains a prediction awaiting evidence. A large settlement with real operational restrictions, removing a genuine tail risk, met by a stock price that did not budge, signals how investors currently regard this company.

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