Time To Offload This Red-Hot FAANG Stock? Ex-Hedge Fund Manager Says Don't Pull Sell Trigger Despite 220% Surge Since November

Meta Platforms, Inc. (NASDAQ:META) stock has been a high-flier this year and is the second-best performing S&P 500 stock so far in 2023.

Former hedge fund manager Whitney Tilson, who has been bullish on Meta, revisited the stock following the run-up.

Calling Meta his favorite tech stock ever, the analyst noted that from a seven-year low of $88.91 on Nov. 3, the stock has run up to $284.33, marking a gain of about 220%.

It isn't yet time to declare victory and exit, Tilson said. "It's critical to let your winners run," he said.

"That's especially true with a high-quality business with a bright future – which is what I think describes Meta."

See Also: How to Buy Meta (META) Stock

Tilson also highlighted a recent post on Meta by equity researcher Abdullah Al Rezwan, which said despite the year-to-date rally, the stock is trading at a discount to the Nasdaq 100 and the S&P 500 Index.

"To the extent, my opinion about Meta's management is correct is what will likely drive shareholders' long-term return," he said.

Why It Matters: Meta’s stock rebound can be attributed to several factors. Firstly, the positive sentiment surrounding tech stocks after their decline in 2022 has played a role. Additionally, Meta’s efforts to streamline its operations and the challenges faced by rival TikTok due to the potential U.S. ban have also contributed to the company’s turnaround.

Notably, Meta’s involvement in the thriving AI technology sector has further bolstered its prospects. As part of CEO Mark Zuckerberg‘s focus on efficiency, Meta announced the elimination of 11,000 jobs in November and plans to cut an additional 10,000 jobs this year.

Price Action: In premarket trading on Thursday, Meta traded down 0.51% at $280.20, according to Benzinga Pro data.

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