Meta Platforms (META) Stock Has “Definitely Been Derisked,” Prominent Investor Says

Insider Monkey
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Stephanie Link, the Chief Investment Strategist and Equity Portfolio Manager at Hightower Advisors, yesterday said on CNBC that Meta Platforms (META) is "definitely derisked" heading into its first-quarter results which are due to be reported today after the market closes.

Link, who frequently appears on CNBC, believes that Meta's extremely large user base and low valuation should prevent the shares from taking a big hit in the wake of the company's financial results.

More recently Meta Platforms (META)'s price target has been cut at Bernstein and Loop Capital ( read the details here).

Why the Veteran Investor Is Bullish on META

Alphabet's (GOOG) recently reported Q1 results "showed that advertising is OK, and 96% of Meta's revenue is advertising," Link stated.

Further, Meta's huge active user base of 3.3 billion people makes it "somewhat insulated" from macro problems,

Link also noted that she expects the company's top line to jump 20% versus the same period a year earlier, while she thinks that it will generate margins of 40% to 42%.

And since the name is changing hands at a low price-to-EBITDA ratio of 13 times, "it's definitely been derisked," she stated.

Shannon Saccocia,  the Chief Investment Officer of NB Private Wealth, added that Meta Platforms (META)'s shares are cheaper than the average name of the Communications Services sector.

Saccocia was appearing on the same show as Link.

The Recent Price Action of META Stock

In the last month, the shares are down 5% in the last month, while they have slumped 18% in the last three months.

While we acknowledge the potential of META, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this 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.

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