Why Karen Firestone Likes Facebook Ahead Of Earnings

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GDP growth of 6%-7% will be very positive for Facebook Inc FB, according to Karen Firestone of Aureus Asset Management.

The Thesis: Speaking Monday on CNBC's "Squawk Box," Firestone said Facebook and the tech sector, in general, underperformed from September to March while investors turned toward reopening plays. She expects Facebook to be one of the biggest beneficiaries of the coming advertising boom as consumers spend more money.

Related Link: Could Apple Take A Bite Out Of FB Ad Revenues? Facebook Prepares To Open The Books On Q1

Earnings: Facebook sells for 22-times next year's earnings estimates, Firestone said, adding that she likes the stock at its current price. 

Facebook reported on Jan. 27 fourth-quarter earnings per share of $3.88 and revenue of $28.07 billion. The company is set to report first-quarter earnings after the close on April 28. The average EPS estimate for the first quarter is $2.36.

FB Price Action: Facebook was higher by 0.8% to $303.75 at last check Monday. 

Image by Simon from Pixabay

Posted In: PreviewsTechTrading IdeasCNBCKaren Firestone
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