5 Best Cheap Stocks To Buy Now According To Billionaire Abrams

3. Facebook Inc (NASDAQ: FB)

Billionaire Abrams is bullish over the future fundamentals of the social media giant Facebook Inc (NASDAQ: FB) amid its strong growth prospects. The firm held FB shares worth million $329 at the end of the fourth quarter, representing the third-largest stock holding of the 13F portfolio.

Kinsman Oak Capital Partners Inc., an independent Toronto-based boutique investment firm, highlighted few stocks including Facebook in an investor letter. Here’s what Kinsman Oak Capital Partners stated:

“Our view on Facebook (FB) may be somewhat controversial. The bear case for FB boils down to antitrust risk and valuation. Facebook, although to a lesser degree, is a relative value bargain as well. We believe the company possesses an element of platform risk that Alphabet does not but, compared to the rest of the market, the stock still seems undervalued. We compared Facebook to the Russell 2000, an index full of cyclical businesses that are considered no-brainers at the beginning of a recovery and popular re-opening stocks that are poised to go higher after the vaccine is distributed (Appendix E). Facebook is significantly cheaper, growing faster, has a larger economic moat, superior margin profile, and requires less capex.

In short, we believe the obfuscated earnings power makes Facebook appear more expensive than it really is.”