Why This Investor Just Swapped Google's Stock For Facebook

Hightower Advisors' Stephanie Link is shaking up her portfolio to start the year. 

Following market outperformance and sizeable gains in 2021, Alphabet Inc GOOG GOOGL is being thrown out and Meta Platforms Inc FB is taking its place. 

"Pretty much 100% of portfolio managers that are core or growth own this thing so I don't know who the incremental buyer is," Link said Tuesday on CNBC's "Fast Money Halftime Report."

Her main reason for cutting Alphabet was simply because of the stock's outperformance. Although she noted it's not expensive, trading around 24 times earnings, she thinks Meta is even cheaper.

Meta (formerly Facebook) is trading at 22 times earnings and growing at a 25% to 30% clip, Link said. The company is also showing "really strong momentum" in daily and monthly active user growth and is in the midst of a $50 billion buyback, she added. 

See Also: Meta Platforms Stock Nears End Of Technical Pattern: What's Next?

Link likes the company's recent rebranding to Meta and the separation of the company's businesses because she thinks it can drive reratings in the name.

"The only FAANG names that I own at this point are Meta, which is a huge position for me, and Apple," Link said. "I'm just trying to be more selective within tech."

GOOG, FB Price Action: At publication time, Alphabet was up 0.92% at $2,796 and Meta was up 1.12% at $331.70.