Leon Cooperman on Facebook: ‘It Doesn’t Look Expensive to Me’


Jun. 1 2018, Updated 9:03 a.m. ET

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.

Article continues below advertisement

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.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.