We’re selling 25 shares of Meta Platforms at roughly $720 each. Following Wednesday’s trade, Jim Cramer’s Charitable Trust will own 240 shares of META, decreasing its weighting to about 4.75% from about 5.25%. Meta Platforms is having a historic run. If slight gains hold by Wednesday’s close, the stock would extend its winning streak to 18 straight sessions. You have to go all the way back to Jan. 16 to find its last down day. Over this span, the stock has rallied roughly 17%, as of Tuesday’s close, and added more than $275 billion in market capitalization. During that same period, the S & P 500 has squeezed out only about a 2% gain. Due to this stretch of significant outperformance, we are forced to confront a high-quality problem. Meta was already one of the bigger positions in the portfolio entering the year, and the latest streak of gains has caused this position size to swell even further. META YTD mountain Meta Platforms YTD Much like we’ve done lately with Club names Apple and Nvidia after their big runs, we are booking profits in Meta and right-sizing the position for the portfolio. That’s money management-speak for taking the position down to a smaller size relative to the rest of the portfolio. After all, we aim to hold a basket of diversified stocks, so we can’t let any one position get too big. With this sale, we will realize a fantastic gain of about 244% on stock purchased in April 2022. This trim does not reflect a change in our long-term Meta investment thesis. As we saw in its latest quarterly results , the company has become a huge beneficiary of its advancements in artificial intelligence. Not only is Meta implementing AI to improve engagement in its family of social media apps, which include Facebook and Instagram, but the new technology is increasing the monetization of advertisements. Investors don’t fear Meta’s ambitious AI investments — they have largely been embraced. (Jim Cramer’s Charitable Trust is long META, AAPL, NDVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
We’re trimming a stock on a 17-session winning streak and booking big profits