Chris BlumasMeta Platforms IncMETAWEAK BUYJun 18, 2026

They execute. Their PE hasn't been this low since late 2022/early 2023. 

He just bought it as a new buy. For 2 years, there's been criticism of their AI spend, but recently they've gone from blindly spending to a path to revenue though isn't sure if their new Spark 1.1 will be profitable. But they can sell some of their space within their compute, which makes them a competitor to Google and Amazon. He likes how they're branching beyond an ad company.

Trades at 20x PE, but has gone from huge free cash flow to low. But they have $200 billion revenue from their social media business, which is growing at 28%. It will probably return to free cash flow positive. The CEO will prove that he's focused on efficiency. It's the only Mag 7 stock she will buy.

Investors are concerned about how much $$ it's spending -- will it pay off in the long term? We'll see. Compared to AMZN and GOOG, it's not really in the cloud; recent announcement of neocloud still leaves them behind the 8-ball. 

Moving down for past year, 200-day MA flat to slightly trending lower. Not expensive, under 1x PEG. Earnings growth of 15%, 20x forward PE. 

Remember, it took Amazon, Google and Microsoft a decade to build their cloud businesses, so this will not happen overnight for Meta, if it happens. It would diversify their companies, so that's good, instead of 100% ads. She's tired of them spending and not delivering he results. So many question marks about how they will grow. She is looking elsewhere. They lost $8 billion on Reality Labs. A headache.

Trades at only 17x PE, as the street's been concerned that all its capex is not being utilized properly. Starting to sell some excess capacity in the neocloud. Needs to improve ROIC, and stop spending $$ on tangential projects. People are cautious. Monetization is seeing some traction. Likes it at these levels.

Bloomberg reported that Meta is planning a cloud business to sell AI computing. Shares jumped 11% or $50. He had predicted $100 eventually, and shares have more room to run. Their enterprise cloud will be instantly profitable. The company is too focused on consumers and ads.

Down 15% this year though the QQQ is up 15% because the chip stocks have become a bigger weighting. Meta is not executing and pivoting on a daily basis. Meta is burning money, figuring out what to do, but should focus on Instagram, Facebook and WhatsApp and their glasses. Those areas are doing great.

Not expensive, trading at 17x PE, gross margins of 82% and operating margins of 41%. But it's spending alot of money, and it lacks a cloud business, unlike its peers. AI is increasing their revenues to engage and shop more.

It is 30% off its highs and trading at 18X earnings which is below the market multiple. He estimates that it is going to grow in the high teens in terms of percentage growth of EPS in the foreseeable future. It is undervalued over concerns about spending a lot of money on data centre development but the return is coming back to META. They know what they are doing and the research shows that returns will be there. The question is what size will they be. He thinks a home run.      Buy 74  Hold 6  Sell 0

Meta has an uncanny ability to come out with new products. But the one problem with Meta--the UK just banned social media for children under 16. If this ban expands--and he thinks it will--it will hurt their ad revenue. Overall, Meta is spending on AI which maintains their lead over their peers.

It has underperformed the AI trade, but is crazy profitable. Will earn $30 EPS this year at under 20x PE. It has proven that AI is accelerating its business. Unlike peers, Meta is not re-selling its compute, but using it for itself. The market was scared when Google said it was selling $80 billion of shares so there were rumours Meta would do the same. He doubts it. The market is stunned by Meta's AI spend, but the growth is there. He expects strong revenue growth this quarter.

He's looking at it. (His limit order missed in March by ~$5, but as value managers they don't chase. May get another chance. :) Likes the platform. Market's a bit concerned about how much it's spending, and it may have to cut back on things the market can't see being monetized soon. 

Another 10-15% drop, and he's going to take a stab at it; likes it for the long term. Right now, the price doesn't provide that margin of safety.

He likes all the hyper-scalers but META has only an 18X PE ratio and has the best upside over the next 12 months. It has had the most incremental advertising dollars over the past five years and is growing its business. Has $250 billion in revenue. It is down because investors feel it is spending too much on AI. It is using AI already in its core business and expanding it to new products. Should be the biggest beneficiary of the AI rollout.
Buy 71  Hold 8  Sell 0