Facebook (FB) Is a ‘Buy’ but Wait for a Dip, Pro Says

Despite Facebook’s (FB) stock trading near its highest price since May 2012, OptionMonster’s Pete Najarian believes the name could see a hiccup in the price. He recommends investors interested in FB to wait for a pullback before buying.

“I still think there’s downside for Facebook”, Najarian said on CNBC’s “Halftime Report” Monday, “not because they’re doing anything wrong….”but I think there’s some room to the downside before I’d have to step in again, and I’m looking for a number [in the] very low $40s-not where it is right now.”

Rosecliff’s Mike Murphy disagreed with Najarain, saying he was positive on the stock. Shares of the world’s No. 1 social network have been on a roll–gaining 74% YTD, and 140% so far this year.

“I love Facebook here,” Murphy said, noting that he was using options to hedge his fund’s position. “The fundamentals on Facebook support a much higher stock. So short term, yeah, you are going to get some choppiness in the market, but I think long term the stock gets through $60.”

On Monday, Facebook shares, which currently trade at more than 41x forward P/E, had a trading PPS of about $46.20 in late Nasdaq trading, printing a market cap of almost $113 billion.

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