stocks

Kevin O'Leary is scared that Facebook will be like Yahoo

Kevin O'Leary
Adam Jeffery | CNBC

Is Facebook the new Apple? Kevin O'Leary certainly thinks so.

However, the "Shark Tank" judge and O'Shares chairman, still thinks the stock is "sell," despite Facebook crushing analysts' earnings expectations on Wednesday.

"It's a must-own name for institutions," O'Leary said on CNBC's "Halftime Report" on Thursday. "It is the new Apple. The problem it has — it's my problem — is I don't own stocks that have voting class shares. What keeps it out of everybody's portfolio is that fact alone."

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O'Leary fears that the "euphoria" and "level of ownership" surrounding the tech giant's stock is too similar to Wall Street sentiment about Yahoo before the stock dipped after hitting its all-time high back in 2000.

Facebook shares were up more than 8.5 percent midday Thursday.

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"What if they do have a misstep?" O'Leary asked. "Look out below, my friend, this thing is going to have a correction like you haven't seen in awhile. Think Yahoo."

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