These two money managers bought ‘FB’ ahead of its Q4 results

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Formerly known as Facebook, Mark Zuckerberg’s Meta Platforms Inc (NASDAQ FB) is set to report its financial results for the fourth quarter on Wednesday, after the bell.

Why Mr Wonderful sees value in Meta

Ahead of earnings, Kevin O’Leary bought shares of Meta Platforms on Wednesday. Mr Wonderful sees “metaverse” as a solid positive catalyst for the stock. On CNBC’s “Halftime Report”, he said:

If you’re a brand, you certainly don’t want to set up in unregulated metaverse beside a, porn shop, for example. So, Zuckerberg will focus on value enhanced with a curated metaverse where he can guarantee you safety in terms of what you’re associated with, and the Street will pay up for that.

FB has recovered about 10% since last Thursday but is still down 15% from its high in early September 2021. Other notable Meta bulls include Evercore ISI’s Mark Mahaney.

Stephanie Link has also been buying FB

Last week, Hightower’s Stephanie Link also said she’d been adding to her position in Meta Platforms since mid-December, which now is a sizable position in her portfolio. In a separate interview with CNBC this morning, she said:

I’ve been buying a lot of the technology stocks that have sold off recently. I do think that the risk/reward at Facebook is very attractive at 20 times, they’re going to grow about 20%. I’m hopeful that Facebook will have a good number tonight, especially in terms of advertising.

Q4 marks the first time that Meta Platforms will disclose numbers for its AR/VR hardware business. Late last year, the American multinational said it will invest $10 billion in Facebook Reality Labs that’s focused on all-things-metaverse, setting a new direction for the company.

Heading into the earnings report, Cowen’s John Blackledge has a price target of $415 on the stock that represents a close to 30% upside from here.

The post These two money managers bought ‘FB’ ahead of its Q4 results appeared first on Invezz.

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