Meta Platforms, Inc. (META)

They report today, but the bar is very high. He's cautious. The fundamentals remain strong: Reels and Instagram. Overall, he's optimistic. Even if Meta misses this quarter, they will recover.

They report today. Is near an all-time high, but they face a very high bar, so that revenue growth needs to show 20% while WhatsApp and Instagram need to maintain strong performance.

They report Wednesday. The CEO announced a plan to make it easier for companies to advertise on its platforms. He's positive.

He has one position in it at the breakout. Consolidations are bullish so it is a pretty good chart

After taking a hard left in the metaverse, which puzzled many, they have since reappeared on the back of AI. 50% of the world uses a Meta product (Facebook, Instagram) everyday, making this an advertising mecca. meta spend $40 billion annually in R&D that pays off and will pay off in AI.

Is buying it ahead of earnings: they pay a dividend, buy shares, and have 10 million active advertisers.

She has questions about Google and others in traditional search and how that will shake out. On the digital side, Meta is using AI very well to drive better returns for advertisers; they've done a great job getting consumers watch ads they don't mind watching.

The balance sheet is as clean as can be with debt down and careful buying. Have reduced their share count 10% over 3 years and introduced a dividend. Loves their growth and margins. 

He wouldn't be surprised if this pulled back after rallying 13% in the quarter. There's some excess. But this company is proving itself; its revenue growth is exceeding peers, namely Alphabet at 15% vs. Meta's 27%. This justifies Meta's richer valuation. Lean into any price correction.

Making an intra-day high today, but remains off its 10-year multiple. It continues to be a great hold, a proven winner. If you believe in AI, you want Meta to spend on capex.

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.