- Facebook (NASDAQ:FB) is the "most appealing risk-reward name in large-cap ... maybe in tech, but certainly in Internet," RBC analyst Mark Mahaney says in a defense of the social network's core business.
- Speaking on CNBC, Mahaney said the market "way overreacted" to Facebook earnings. (Shares are still nearly 17% below the point they reached before earnings on July 25).
- The core ad business is fine and the company's readying monetization of messaging, and with "robust" valuation in big tech, it's one of the better investing opportunities in the area, he says. The company's outlook turned off some investors, but Mahaney suggests the guidance was conservative and messaging monetization offers "huge profit pools" waiting to be uncovered.
- He expects it will reclaim that $217/share mark it had reached before the earnings report.
- Now read: Facebook Finally Starts The Move Into Subscriptions - And Gives Instagram A New Jumpstart
Original article