Stockchase Insights Meta Platforms Inc / Facebook META-Q BUY May 02, 2025

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). 
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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.

They reported a strong quarter after the bell: 37% YOY EPS growth and 19% YOY revenue growth. Q1 revenues beat as ad sales did not disappointment. Q2 guidance was in-line, and they raised their capex (which will benefit Nvidia).