Leon Cooperman on Facebook
Leon Cooperman, the chairman of Omega Advisors, shared his views on investment in Facebook (FB) in a May 22 CNBC interview. Cooperman noted that he has an optimistic view on Facebook. In the previous part, we noted that Cooperman believes that the FANG stocks’ valuations look very reasonable. The stronger earnings growth has driven these stocks’ valuations and results.
Cooperman stated that Facebook has “a fortress balance sheet. It doesn’t look expensive to me.” He also expects that FB’s earnings could grow at a rate of 20.0% per year. In the previous article, we saw that Facebook’s stock price has risen 654.0% in the past five years.
Despite the recent data breach issue, Facebook’s stock price recovered its losses and is currently trading at $187.67. The Technology Select Sector SPDR ETF (XLK) rose 7.9% on a year-to-date basis. FB is currently trading at a price-to-earnings multiple of ~27.5x while the S&P 500 Index (SPY) is trading at a price-to-earnings multiple of 21.4x.
Cooperman noted that his firm has a long position in Facebook and would be interested to buy more FB stock at the price of $180 per share. FB represented 1.3% of Omega Advisors’ portfolio on March 31.