Facebook should 'take the hit' to its finances and tackle advertisers' concerns, Jim Cramer says

Best Buy, Coca-Cola, Verizon, and other large companies have joined an advertiser boycott, pausing their social-media spending to protest issues such as hate speech, misinformation, and voter suppression.
"Facebook has been trying to get away with this for a long time, and this seems to be one of those moments where big corporate America is not gonna take it anymore," Cramer said.
Facebook CEO Mark Zuckerberg said last week that his company has already invested in platform moderation, and it recently introduced stricter content policies.
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Facebook should stomach the costs of stamping out bad behavior on its platform, "Mad Money" host Jim Cramer said on CNBC on Tuesday .

The social-media titan should invest in the artificial intelligence and the staff needed to properly moderate its platform, Cramer said.

"Maybe costs a couple billion. But you know what, take the hit."

Read more: JPMorgan breaks down how COVID-19 nearly destroyed one of the market's safest trades and lays out 3 lessons to help investors tackle future crises Dozens of high-profile companies have pledged to pause advertising on Facebook and other social-media websites in some cases to protest issues such as hate speech, misinformation, and voter suppression. Best Buy, Coca-Cola, Ford, Starbucks, Verizon, and others have vowed to halt their spending. The movement is being spearheaded by civil-rights groups and their Stop Hate For Profit campaign . "Facebook has been trying to get away with this for a long time, and this seems to be one of those moments where big corporate America is not gonna take it anymore," Cramer said on CNBC. "The time has come," he continued. "History is turning against them. Why not do what's right?" Read more: Goldman Sachs has formulated a strategy that could triple the market's return within a year as volatility remains higher than normal including 11 new stock picks for the months ahead Facebook has announced several adjustments to its policies in recent days. They include labeling ads about voting to direct viewers to accurate information, tagging posts by public figures that violate its policies as "newsworthy" enough to not take down, and banning a wider range of hateful language. Moreover, the company is already taking the steps that Cramer outlined, CEO Mark Zuckerberg said in a Facebook post last week . "We've invested heavily in both AI systems and human review teams so that now we identify almost 90% of the hate speech we remove before anyone even reports it to us," he said. Facebook didn't immediately respond to a request for comment from Business Insider. Read more: BANK OF AMERICA: Buy these 8 retail stocks as they rake in revenues from an unprecedented surge in home-improvement spending Cramer pointed the finger at Facebook's bosses on CNBC. He said its board members which include Zuckerberg, COO Sheryl Sandberg, and tech billionaires Peter Thiel and Marc Andreessen aren't doing enough to address its problems. "They don't give a damn," he said. "They're making a lot of money." Facebook's stock price has skyrocketed about 500% since it went public in 2012, boosting its market capitalization to about $650 billion today. Investors wiped about $55 billion off Facebook's market cap last Friday as the advertiser boycott gained momentum, but its shares have regained ground in the past two days. NOW WATCH: We tested a machine that brews beer at the push of a button See Also: Stock analysts are having a moment in the sun as the market gets flipped upside down. We spoke to 11 of the top-ranked on Wall Street to get their forecasts and single-stock picks. The chief strategist of $2.5 trillion State Street recommends 7 ETFs for investors looking to profit from a permanently altered post-coronavirus landscape Day trading for fun is a 'losing proposition,' Wealthfront's investment chief Burton Malkiel warns