“Advertising did not roll over” for Alphabet (GOOG) in the first quarter, and that development bodes well for Meta (META), prominent investor Stephanie Link said on CNBC on Friday.
Link, the Chief Investment Strategist of Hightower Advisors, noted that she had been purchasing META stock for some time and that she had bought more shares of the social-media giant on Friday morning.
Why Link Is Bullish on META
Noting that advertising accounted for almost 96% of Meta’s sales in the fourth quarter of 2024, Link said that if the advertising sector does not deteriorate a great deal, “Meta should do pretty well.”
The well-known investor added that Meta’s revenues have been growing at a 20% annual clip, while it has been delivering operating margins of 40%. Additionally, she noted that it is changing hands at a price-to-EBITDA ratio of slightly less than 13 times, well below its historical average of 17 times.
“I think (that with META stock), you’re getting quality on sale.” Link said.
With the tech giant due to unveil its Q1 results on April 30, Link said that she will buy more of the shares if they fall in the wake of the report.
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This article is originally published at Insider Monkey
