Billionaire Masayoshi Son’s Top 5 Stock Picks for 2021

2. Facebook Inc (NASDAQ: FB)

The shares of social media giant Facebook (NASDAQ: FB) are struggling to trade in green this year. SB Management, however, looks optimistic about Facebook’s future fundamentals. The firm raised its position by 41% in the latest quarter to 18.13% of the overall 13F portfolio. It ranks 2nd on the list of Masayoshi Son’s top 10 stock picks for 2021.

Kinsman Oak Capital Partners Inc., an independent Toronto-based boutique investment firm, highlighted a few stocks including Facebook in the Q4 investors’ 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.