John O'Connell, CFAMeta Platforms IncMETAPAST TOP PICKAug 10, 2021

Their new Muse AI platform is a game-changer, especially for the enterprise.

Their products remain in consistent demand, and they just launched Muse, a personal AI platform that could attract billions of users. Meta crushed it with Muse and he bets it will have more market share than OpenAI.

In the last quarterly report they beat on numbers and showed strong revenue growth which it's not getting credit for. How to monetize AI is the big issue but it is showing that it can be productive on the AI side. They are seeing clearly the benefits of AI in their advertising business model. The market had undervalued it but it is now trading at a premium. It still can go up if they can execute well.           
Buy 72  Hold 6  Sell 1

Huge fan of it. The consumer will drive the stock, now that they released the Muse AI agent targeting consumers. He is selling covered calls on Meta. Great to see the founder mature into a 

They just launched the Muse AI agent for consumers, which is exciting, because they can directly sell products to their customers. Amazing. Had owned this a long time. Don't bet against them. They remain one of the cheapest hyperscalers and are still growing.

It hasn't had a great year (it's flat). AI development at Meta is underappreciated. Is a great stock to own. It trades at only 20x sales.

One day Google is front of the AI race with Gemini. Now, it's Meta. Next, Anthropic and openAI. What makes Meta different is the AI is purely targeting the consumer. He has a large position and may sell part of it. The CEO is the original founder, which also makes him distinct from its peers. It's near record highs.

The overhang is that, despite good numbers from their ad business and AI's impact, Meta is still spending a lot building data centres--can Meta earn good returns on all those centres? However, Muse shows they can build productive things with AI. Despite the recent rally, he'd still buy it.

It's gone from $600 to $700 in a short time and it's impressive, because they will sell excess compute.  Meta is kind of cheap.

Re: the safety debate and the European ruling, it doesn't impact her thesis on Meta. To her, Meta remains a huge cash-flow generator, earnings growth is significant and they're past the safety issue. 

Among the big tech CEOs, Zuckerberg will be the best at navigating the AI trends.

They're still generating huge amounts of cash despite all their AI spending. Trades at only 20x PE and down 2% this year after a huge run in 2025. Doesn't know if their paid subscriptions will work or not. But they keep doing things efficiently and ahead of the curve. They get things right without being overly aggressive. Their ad business remains huge.

The market is returning to the Mag 7 because of its safe performance and returning to AI companies that prove they can generate ROI. Meta's CEO can navigate any troubled AI environment. Their debt costs are low compared to peers and their valuation is attractive.

Is up nearly 6% this week and is the cheapest hyperscaler at 18.1x PE. Buy dips. Is developing AI and he's confident in it.

They will have AI agents next and what's cool is that Meta has billions of users who can distribute it.