Famed NYU professor and valuation theorist Aswath Damodaran has confirmed he will be selling his Facebook (NASDAQ:FB) position in the near future. In his mind, shares have surpassed their intrinsic value of $27.65, and since Facebook is a growth company, there is little reason to hold on to shares. He grounds his view in his experience that investors tend to overreact to a growth company's results, and right now, he believes investors are reacting too positively to Facebook's recent quarterly results.
However, Fool contributor Steve Heller believes that if you're truly a growth investor, it may not be wise to follow Damodaran's logic. Check out the following video to get the full story.
Fool contributor Steve Heller has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.