Citron Says Time To Buy Facebook, Sees Stock On Way Back To $160

Andrew Left's Citron Research told investors in a report published on Wednesday that he's become a bull on Facebook, which he predicts will bounce back to $160 per share. Further, Citron argued that within social media, Facebook (FB) and its Instagram "have no competition". 

'SKEPTIC TO A MAJOR BULL': Calling it the "2019 S&P stock of the year," Citron Research argued that separating the noise from reality "will take Facebook back to $160." Andrew Left's Citron acknowledged that the stock is down 40% year to date and over 40% from its recent high, as media reported "on one scandal after the next," but noted that the company's revenues and more importantly its user base has seen little impact.

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Comparing it to Altria (MO), which has a "history of killing its customers and just invested in a company that ensures that it will be killing its customers for generations to come", the report highlighted that Facebook is now trading at a discount to the Marlboro cigarette maker, though the social media giant is expected to grow 24% next year while Altria is only expected to grow 1%. Citron also believes that within social media, Facebook and Instagram have no competition, with the latter "building a standalone app for shopping". "As investors have become overly concerned about the short-term noise of privacy and propaganda, they have forgotten to look at the earnings power and potential of the most advanced advertising tool with global reach in messaging, networking, and the future of shopping. The Facebook platform has advanced a long way and has turned this research firm from a one-time skeptic to a major bull", the report reads.

PRICE ACTION: In morning trading, Facebook has gained over 3% to $128 per share.

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