Pro: Facebook stock is still trading at a ‘reasonable price’
- Facebook printed a record high for the second day in a row on Tuesday.
- The social media giant is the 2nd best-performer in FAANG stocks this year.
- CEO Gina Sanchez of Chantico Global picks Amazon as the best FAANG stock.
Facebook Inc (NASDAQ: FB) has remained upbeat in the stock market in recent days, printing a record high for the second day in a row on Tuesday. The rest of the FAANG stocks – Apple, Amazon, Netflix, and Alphabet, have not done so since April.
Michael Binger’s comments on CNBC’s “Trading Nation”
According to the president of Gradient Investments, Michael Binger, Facebook is still not done with its bull run in the stock market. On CNBC’s “Trading Nation”, he said:
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“Facebook is continuing to be a buy for us. We own it. I would add more if you don’t own it here. It’s the best consumer-driven internet play out there, in my opinion. They’ve got a great advertising platform, 18 to 20% growth for the next several years. You’re getting that at a reasonable price.”
On a year-to-date basis, Facebook is currently up about 24% and stands behind Alphabet Inc only in the best performing FAANG stocks this year. The social media giant saw a massive 94% annualised growth in its Q1 net income.
Binger also lauded Alphabet’s performance in 2021 during the same interview with CNBC, calling the Google-parent the “leader of the pack”. Apple Inc, Binger highlighted, has seen a 13% decline compared to its peak seen in January. The recent pullback poses a good buying opportunity, as per the expert.
“I see Apple as a core holding, we own it, we love it, and I think you could buy it right here on this pullback. The PE multiple has actually come down to the low-20s right now. So, I like Apple here,” he commented.
Gina Sanchez picks Amazon as the best FAANG stock
According to CEO Gina Sanchez of Chantico Global, however, Amazon is, at the moment, the best FAANG stock to invest in, despite it being the most highly-priced. Amazon currently trades with a multiple of 51.5 times forward earnings versus Facebook’s (cheapest among FAANGs) less than 24 times.
On “Trading Nation”, she said:
“This is where the fine nuance between growth and price leads you to growth-at-a-reasonable price. Amazon has a more interesting road ahead because they had strong growth during the pandemic. They’re probably going to lock in those consumers, their cloud business is still growing dramatically, and so the roadmap for them is very good. When you look at these interesting stocks, Amazon seems fairly priced given that it has still significant growth to come,” Sanchez added.