Brenda Vingiello, CIO, Sand Hill Global Advisors Meta Platforms Inc / Facebook META-Q PARTIAL SELL Mar 15, 2024

Of the Mag 7, he likes this, but it's tough to buy at currently high levels. For an options trade: sell that $650 put (almost 10% downside) into May, then collect $21.50, which is a large premium, but huge downside protection.

It continues its record rally today. Last night, they increased their dividend by 5%. It's the cheapest Mag 7 in PE and have delivered strong. They've bought back $44 billion of shares in the past year. Massive free cash flow. He hopes there's a stock split.

Generally, big tech are good companies, but have lost ground recently and their valuations have been nosebleeds for a long time. Meta is basically Facebook; he can message his mother in New Zealand cheaply, but fundamentally what will it do for him? Is it a sustainable business model. It's too early to say which of these names is a buy the dip, buy you could trim or take some names off the table.

Shares are washed out from this correction.

Trades around 23x PE with a strong growth rate. One in two humans interact with a Meta product everyday. An excellent place to be.

He likes Meta here, is fairly priced, despite the overall selling in tech in recent weeks. 

The stock has made a bit of a 'round trip' from its recent highs but considering its strength, market share, financial position and growth, at 23X earnings (with $77B cash) we think it is buyable for investors who can look beyond the current market volatility (which will end, one day). 
Unlock Premium - Try 5i Free

It's a pure ad play and ads struggle in a slowdown. He worries about its AI platform--others are better.

It appears to have little exposure to tariffs, because they sell advertising, but this could be a target of EU tariff retaliation or if the trade war leads to recession. Is -30% from highs, and these fears are baked into the stock. Trades under only 20x PE.

They report Wednesday. Many are worried about their ad business, but he isn't.