NASDAQ:META

Meta Platforms, Inc. (META)

742.21
+14.13 (1.94%)
as of Oct 5, 2026, 8:18:02 pm Market Open.
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TOP PICK
The stock is plunging since the beginning of the month. Trading at 14X EPS. Metrics were disappointing but Greg Newman and Gordon Reid still think the company is undervalued. They are optimistic about the pivot to the metaverse and recently gave BUY signals. Social media mentions are up 122% over the past 24h.
DON'T BUY
Go with GOOGL instead. Statistically looks inexpensive, but its business is changing dramatically. Core business under attack, future business is uncertain. Generates a lot of cash, but capital allocation is toward the unproven. Avoid it like the plague.
BUY
It is cheap and trades at 14X with growth rate of 14%. It is a bet on management. There is a concern at this level over spending on Metaverse. Metrics were disappointing in last quarter but it works long term so you could add at these levels.
TOP PICK
He likes their business. There's a transformation happening to the metaverse. FB has been very successful in monetizing users; nearly half the population of the globe has some interfacing with FB and related businesses. Last week, FB said there's competition from Tik Tok and FB discussed Apple's changes to privacy policy to forbid advertisers to get personal preferences (which impairs Facebook's ad business). And yet, FB stock is trading at a discount to the market and is growing faster than the market. FB will spend $30 billion this year on capex. They have a $33 billion share buyback program, 5% of their market cap. Have some faith that they will transform themselves. (Analysts’ price target is $335.14)
WATCH
FB needs billions to develop the metaverse, which he's excited about. But if you use an Apple device, FB can't track your online behaviour anywhere which hurts their advertising business. That said, don't give up on FB at these levels. He doesn't want to bet against CEO Zuckerberg, but he is falling behind. Give it a few quarters to see if there's anything worth saving here. Don't buy it down here yet.
BUY
They report Wednesday. Looks cheap based on 2022 earnings. FB has been consistent for a long while and for once isn't attracting criticism for its business practices. FB helps small businesses a lot to develop (through Instagram exposure). FB is worth owning for its digital advertising and the metaverse.
BUY
They've succeeded in monetizing (through advertising) the huge volume of people using Facebook. He hopes the metaverse works out for them, but the metaverse is something he doesn't understand.
BUY
Big tech alternative that's more compelling than MSFT.
BUY
FB vs. AAPL AAPL's done very well, lots of cashflow. One concern is they're reliant on iPhone for major percentage of earnings. Growth of revenue has been close to 9%, which is weak for tech. AAPL is 31% forward PE with a 10% growth rate, PEG ratio of 3. FB earnings growth has been 25%, and revenue growth 27%. FB valuation makes more sense at 24.5x forward earnings, with a 23% growth rate, PEG ratio of 1.
PAST TOP PICK
(A Top Pick Sep 23/20, Up 33%) Believes a great company even amongst controversy. Great at taking advertising expenditures away from legacy media. Small and medium sized business' who can't afford to advertise on legacy media, switching to Facebook. Will see increasing eCommerce opportunities. Increasingly complex online payment systems will add value. Metaverse will present opportunities as well.
BUY
He's worried as we go into 2022, with tapering by central banks, inflation fear, interest rates going up, highly leveraged companies will struggle. He just owns FB, so go with that instead of smaller names.
BUY
Call buying in AMD, MSFT and Nvidia has been huge, and now we're seeing it with FB. 27,000 of Dec. 31 $360 calls, going 26 cents to $1.50. A lot of activity in these big-cap techs, and they're all looking for an explosive move this week.
WATCH
It's no longer a social media platform. He's wrapping his head around the metaverse--virtual reality and real estate and other applications? It has the potential for the way people will interact with each other. People will spend a lot of time in front a screen (already are). You own FB stock because you believe in the transformation into the metaverse, which is starting only now and will lead to a generational transformation, one hopes.
COMMENT
Facebook not as expensive as was previously. Lots of free cash flow and no debt. Lots of assets(Instagram and WhatsApp). Regulatory issues surrounding company have not been dealt with well. Facebook one of few places to advertise online effectively. Opportunity in eCommerce. Change in management might be necessary. Small business not advertising in newspaper anymore (good for Facebook).
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