Meta Platforms, Inc. (META)

The problem is that shares have gone up so much that people are selling to buy small/mid-caps. Shares could get even cheaper.

He's done well with it, though they went off-course with the Metaverse which he never understood. But they're back in course by watching their spending and solid revenue generation. They continue to surprise on the upside.

They own it along with other big techs. It is not cheap but is the cheapest of the big techs and is growing at a good speed. The CEO has been doing the right things including a previous big layoff and the company is now fully into AI.

Shares have been rallying because the last several years, management reigned in spending and started a strong capital allocation strategy. This is consistent with the other Mag 7 companies. The street has rewarded Meta for this. The market comes down to these companies continuing to grow revenue.

Generally, there are AI applications to come to the Mag 7 companies. Nothing new has happened to Meta in the past month that investors don't already know. That said, an analyst just raised Meta's price target, but that remains too low though reasonable at 25x PE.

Two big Chinese advertisers reduced advertising on Meta, but he expects other advertisers to come in and expects a stock split.

Has fallen ~18.5% the past few months. Yet - company is rebounding. Could be a good time to buy. 

There is still lots of spending on AI which is still in the early stages. It has done an incredible job of migrating to online and mobile advertising and is a dominant player. The productivity for advertisers using these platforms is increasing dramatically. It has many applications and is trading at a multiple of only 20 times.                 Buy 62  Hold 7  Sell 2

They just reported a sizable top and bottom line beat and 7% user growth, but shares are sinking 15% after hours because their near-tear and full-year guidance came in light to the street. Compare this to Tesla which missed numbers including negative free cash flow, but CEO Musk sold the quarter well.

 It reports Wednesday. They have a lot of levers to push. Zuckerberg doesn't have to pull a rabbit out of a hat, just talking about earnings and forecasts. Wait. Their quarter could be like Netflix's where the quarter was good, but shares fell anyway.

The drop is a result of the sharp rally of recent months, but Meta remains a core holding of his. Meta benefit from the AI boom and Whatsapp which the whole world uses and they haven't even monetized it. Trades at 25x PE and earnings will grow nicely. Buy on dips and average in over time. Zuckerberg knows what he's doing; has done a wonderful job.

She trimmed, taking profits late last week. Nothing is wrong with the company fundamentals, but a lot of good news has been baked in. It's amazing how Meta has refocused on margins which beat by 7% in Q4. Phenomenal. Its PE has moved up huge, though deserved given how Meta has refocused on its core business.

Peaking today, so he took some profits. It's reliable with predictable cash flow (assuming they have it). There's some exuberance in the wider market. It remains a core position. This and MSFT each make up 15% of his portfolio.

Their new, smart Raybans are cool, the new VR headset is also cool, plus the $100-billion Whatsapp while digital ads remain strong.

It's priced at the market multiple, are buying back a lot of stock. Nothing wrong with having an overweight rating on this, given Meta's strong balance sheet, offer cutting-edge technology and can grow earnings even during weak economies.