QQQ
+ 0.00
393.82
+ 0%
BTC/USD
-30.43
56920.13
-0.05%
DIA
-0.08
344.98
-0.02%
SPY
+ 0.33
455.23
+ 0.07%
TLT
+ 0.00
151.59
+ 0%
GLD
-0.02
165.52
-0.01%

Does Facebook Present A 'Really Interesting Opportunity' At Current Levels?

October 19, 2021 12:56 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Does Facebook Present A 'Really Interesting Opportunity' At Current Levels?

Altimeter Capital founder and CEO Brad Gerstner thinks Facebook Inc (NASDAQ:FB) offers an attractive investment opportunity at current levels.

There are always opportunities in the market, even when the market as a whole seems inflated. Facebook is one of those opportunities right now, Gerstner said Tuesday on CNBC's "Fast Money Halftime Report."

Facebook is trading at 20 times earnings and 21 times next year's free cash flow, while the company is growing at a 20% rate. 

"It's trading at the same multiple of free cash flow as the S&P [500] but it's growing four times as fast," said Gerstner.

See Also: Todd Gordon Recommends How To Play Facebook's Earnings With Options

Facebook is also investing about five times as much capital into research and development on an annual basis compared to most companies in the S&P 500, he noted. 

"We think that that's a really interesting opportunity at a very fair valuation in a market that is largely inflated," Gerstner told CNBC.

Facebook is set to announce its third-quarter financial results after the market closes on Oct. 25.

FB Price Action: Facebook has traded as high as $384.33 and as low as $244.61 over a 52-week period.

The stock was up 1.65% at $340.87 at time of publication.

Photo: Firmbee from Pixabay.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

Want To Bet On Metaverse? Jim Cramer Says These 4 Stocks Are The Way To Go

Want To Bet On Metaverse? Jim Cramer Says These 4 Stocks Are The Way To Go

Television host Jim Cramer has come up with four names that he says investors should buy if they want to latch on to the metaverse bandwagon. read more
Is Apple The Most Overpriced Tech Stock Right Now? Dan Niles Weighs In

Is Apple The Most Overpriced Tech Stock Right Now? Dan Niles Weighs In

Apple Inc (NASDAQ: AAPL) is up about 14% year-to-date, but the stock may be overvalued, according to Satori Fund founder and portfolio manager Dan Niles. read more
What The Name Change Means For Facebook And Why Pete Najarian Is Buying Call Options

What The Name Change Means For Facebook And Why Pete Najarian Is Buying Call Options

Facebook Inc (NASDAQ: FB) is trading higher Friday after the company announced that it will change its name to Meta. read more
Between Facebook And Microsoft, Talkington Believes In This Stock

Between Facebook And Microsoft, Talkington Believes In This Stock

On CNBC’s “Halftime Report,” Bryn Talkington of Requisite Capital Management said that Microsoft Corporation (NASDAQ: MSFT) will rep read more