Meta's Power Deal With Entergy Could Add 100 Points to Stock, Cramer Says

Meta's reported power deal with Entergy comes at a critical moment for the company. Investors have grown increasingly concerned about Meta's soaring capital expenditures, particularly its heavy investment in AI infrastructure. The Madison Large Cap Fund's Q1 2026 investor letter notes that while Meta is investing heavily in AI and seeing real benefits in ad personalization and efficacy, many investors worry about rising spending. A long-term power agreement could address this concern by demonstrating that management has secured reliable, likely cost-effective electricity for its data centers—a prerequisite for turning those billions in infrastructure spending into returns.

Meta's stock weakness despite these developments—down substantially over the past year—suggests that the market has not yet fully priced in the value of the company's AI initiatives or the strategic importance of securing power. Cramer's call that the deal is worth a hundred points reflects his belief that Wall Street is underestimating how pivotal stable, negotiated power costs are to Meta's ability to scale its AI operations profitably. However, the lack of official confirmation from Meta itself leaves some uncertainty about the deal's exact terms and timing.