Meta Platforms, Inc. (META)

Making an intra-day high today. Momentum now is driven by it being an AI play. But look at the fundamentals: a 3% free cash flow yield, not 5% anymore, and trading at 23x PE. Is this sustainable? How much will they spend on AI? Will their efficiency result in huge spending? Consider trading some of this. She holds a huge position.

It shed $251 billion in market cap on Feb. 3, 2022, but has since rallied 116%, beating the S%P's 23%.

They lead in online mobile ads that Facebook can bundle with their other apps and sell to advertisers, all at a market multiple. He sold this and bought it back recently. 

Many feel the mag 7 are overvalued, but Meta deserves credit for having a real return on investment on AI.

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.