Meta Platforms, Inc. (META)

Up 176% in 2023, the #2 stock in the S&P. They cut costs, Instagram boomed and Reels came on strong. The metaverse has to deliver this year (perhaps through its headset). The main driver has to do with the CEO's resolve.

She's been trimming this given its strong run. Up 193% this year, but remains cheap at 24x PE and 25% revenue growth which she expects to grow fruther next year. 

Recent share price dip, a good time to buy. Concern is that growth is being driven be "FOMO". ETF buying and indexing buying might be reason for strength. If recession occurs, question is how business will perform. 

They've had an incredible run the past 12 months, a huge bounce, with a small cup-and-handle chart in the past two months. It hasn't broken its last low. Short-term, it's overbought and expects a pullback to $300. If it indeed pauses, it could break up further.

Online ad revenues are killing it, and Reels is ahead of plan and will eventually rival TikTok. This stock should not have fallen this much after reporting. 

They reported great earnings, but the market focused on one line about consumer product advertising pulled back right after the Israel-Hamas war, but that number is already coming back.

Great foundation of users. Lots of great products. Little concerned on Metaverse interest. Not investing at this time. Ability to generate cash is strong in software business. 

He just added more shares. Yesterday, their earnings were great

Trading at 19x PE, will have 24% earnings growth in 2024, then 17% growth in 2025 and are doing great cost-cutting. Is still a great business. Selling recently has been to rebalance portfolios and take some profits.

They report tonight--it'll be about their AI and their meta content library. It's had a great run this year, and he targets $371. Last time they reported they bear earning by 15 cents, so they must match that this time. Add a tranche at $290 and a final tranche at $265. Wouldn't go all in.

He sold it and has never bought it back. Trading at a decent 20x earnings. Sold it because the metaverse spending, which they got religion on that, and they reduced their workforce. Amazon is catching up quickly in digital ads, though. Meta has good opportunities in Instagram and Whatsapp, but have to monetize that. Shares have moved up because of cost cuts. Not sure about their future earnings, but their cost structure is much better.

Compelling price to growth. He models 20% growth, trades at 18x. You, can buy that all day long. Not to say it won't go down in difficult environments like this. Last quarter double-digit revenue growth, earnings beat, # of users beat.

She sold some of her shares. The top 10 S&P stocks trade at 25.9X PE, while all the rest is 16.7x. The gap is too wide.

Loves Meta for its 16x 2024 PE.

Megatech offers investors resilence in a higher-for-longer interest rate environment. Not not-profitable tech or consumer discretionary. Energy is another sector that offers this confidence, but no other sectors.