Alphabet Inc GOOG GOOGL and Facebook Inc FB are reopening plays, Satori Fund founder and portfolio manager Dan Niles said Thursday on CNBC's "Squawk Box."
Both companies grew revenue last year while advertising was down, Niles said, adding that the revenue growth was impressive given the circumstances surrounding the COVID-19 pandemic.
As hotels and airlines begin advertising again, Google and Facebook will be beneficiaries, he said.
At about a 25x price-to-earnings ratio, the valuation of the two FAANG stocks is reasonable, especially considering that the two companies will grow revenue by about 30% this year, he said.
Revenue will "continue to improve as economies across the globe start to open up," Niles told CNBC.
Price Action: Facebook traded as high as $331.81 and as low as $207.11 over a 52-week period. The stock is up 20.08% year-to-date.
At last check Thursday, Facebook was up 1.38% at $332.19.
Alphabet traded as high as $2,452.37 and as low as $1,347.01 over a 52-week period. The stock is up 39.08% year-to-date.
At last check Thursday, Alphabet Class A shares were up 0.19% at $2,384.78.
Photo courtesy of Alphabet.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.