Why Dan Niles Likes These 2 FAANG Stocks Right Now

Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Facebook Inc (NASDAQ: FB) are reopening plays, Satori Fund founder and portfolio manager Dan Niles said Thursday on CNBC's "Squawk Box."

Both companies grew revenue last year while advertising was down, Niles said, adding that the revenue growth was impressive given the circumstances surrounding the COVID-19 pandemic. 

As hotels and airlines begin advertising again, Google and Facebook will be beneficiaries, he said.

At about a 25x price-to-earnings ratio, the valuation of the two FAANG stocks is reasonable, especially considering that the two companies will grow revenue by about 30% this year, he said. 

Revenue will "continue to improve as economies across the globe start to open up," Niles told CNBC.

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Price Action: Facebook traded as high as $331.81 and as low as $207.11 over a 52-week period. The stock is up 20.08% year-to-date.

At last check Thursday, Facebook was up 1.38% at $332.19. 

Alphabet traded as high as $2,452.37 and as low as $1,347.01 over a 52-week period. The stock is up 39.08% year-to-date.

At last check Thursday, Alphabet Class A shares were up 0.19% at $2,384.78. 

Photo courtesy of Alphabet.