META Is “a High-Quality Company on Sale,” Well-Known Analyst Says

Hightower Chief Investment Strategist Stephanie Link, a well-known investor, told CNBC recently that she had bought “a small amount” of META stock after selling the name for a big profit when it was at $350.

Why Link Is Bullish on META

Noting that the stock is changing hands for around 20 times its earnings, Link pointed out that its profits are expected to increase by 20%. She added that its operating margins are a strong 40%.

Meta App 3D sign

Moreover, the company’s 3.3 billion average daily users give it “a great moat,” while it’s effectively monetizing AI, according to the investor.

She also pointed out that META has a $57 billion share buyback initiative, while its profits are likely to surge much higher when it starts spending less on capital expenditures.

Link Plans to Double Down if META Drops

If the shares drop below their current levels, Link plans to buy more of the name. “This environment sets up really well for best-in-breed, high quality, blue-chip companies,” she explained.

The Recent Price Action of META Stock

In the last month, META has sunk 11%, while the shares are little changed in the last three months.

While we acknowledge the potential of META, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.