Summit Global’s David Harden is still bullish on FB
- Harden recommends buying FB after an over 30% decline in the stock price.
- He explained his rationale for the bullish call on CNBC's "The Exchange".
- The CIO says much of the downside risk to FB is now priced into the stock.
At a time when Meta Platforms Inc (NASDAQ: FB) is scrambling to find a pinch of love from global investors, David Harden says the sell-off is a fantastic opportunity to buy the stock on sale.
Harden’s remarks on CNBC’s ‘The Exchange’
Meta reported disappointing results and gave dovish guidance for the future last Wednesday, resulting in an over 30% hit to shares, but the Summit Global Investments’ CIO is convinced much of it is now priced into the stock.
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The only thing now that’s not flushed out is whether they’ll shut down Facebook and Instagram in Europe. But the reality is that they’re in a space that’s exploding; this metaverse. They’re all in on this. So, I think this pullback is a great opportunity to build your position.
Earlier this week, Meta said it might be pushed into cutting Facebook and Instagram in Europe if the region’s new legislation prevents it from transferring user data to the U.S.
Why else does he like FB?
According to Harden, a cheap stock with above-average growth and high-profit margins is a rare recipe that is bound to drive both retail and institutional investors to FB. On CNBC’s “The Exchange”, he added:
Mark Zuckerberg is doing a great job. He’s very eager for growth. Oculus virtual goggles were a hit in Christmas time. I think that continues. So, a lot of the risk has flushed out of this stock. With the volatility in the market, this is a position that I’d look to continue to build.
His outlook is similar to Jim Cramer, who also said he had total faith in CEO Mark Zuckerberg in terms of his ability to navigate Apple’s privacy changes and pull off the metaverse.