Meta Platforms, Inc. (META)

He sold FB in February. Something didn't feel right; he didn't expect the big drop in the spring, then it rallied, then dropped again. There's too much of FB happening in the media like the Instagram founders leaving today. Too much attention and he doesn't like that. Wait till it goes from the headlines to the back page before you get interested again. FB is very undervalued. He doesn't want to be in it right now. He's not on Facebook now. That said, it looks amazing now going forward and the story isn't over. Really good valuation.

After their report in July, they dropped a whopping 20%. They're smart by traditionally underpromising; also smart by deflecting the current privacy issues. Now, they are undervalued. Peel back layers to find a company with a massive economic moat of 2.2 billion users. Those who've left Facebook are going to Instagram--which Facebook owns. They also own WhatsApp, which has a billion users. The return on ad spend is better than Google, he understands from advertising people. He will add to his position. (Analysts' price target $205.12)

Following the drop in August it is now a buy on their list. There are over 2 billion users around the world. The fear of privacy are behind them and they should generate 20% growth in revenues and margin. This is a good opportunity to buy on the dip.

They won the crowd with Facebook and Instagram. They got through the Cambridge Analytica scandal. The shakeout has taken place. They have no debt. ROE is 20%. (Analysts’ price target $205.12).

It is all about Instagram. He thinks it is going to be the shopping mall to the world. Worldwide. The regulation problems are providing a bigger moat to this company. (Analysts’ price target is $205.12)

The stock has broken technically. All social media has been pressured. Short-run, there's noise. Until technicals improve, he won't enter this. He'd wait for a better entry point. Remember: a lot of investors who bought when the stock climbed to $220 will sell when FB rises to those levels again. Why wait for that?

He reduced his exposure to FB because it was getting too large in his portfolio and because of regulatory risks and costs. It's now down to a reasonable valuation. You can buy it here. There remains headline risk. But FB is doing the right thing to improve security, and this will get politicians off their back; it'll cost them money to do this. They're still growing rapidly, particularly in Instagram and Messenger. Well-run. The stock will be in the doghouse, but give them credit for using AI to weed out bad actors on their platform. Look long-term.

It has certainly gotten cheaper. It is hard to give recommendations over the long run on this stock. Despite their earnings miss, they have still not recovered. Their valuation is okay and reasonable relative to other tech stocks. For now it is a neutral and if it keeps declining it will be a sell.

More recently, stock has gotten hit because of privacy and data issues. Trading below 200-day moving average. Long-term, we’re not going to shift from targeted, digital advertising. Trading at 22x earnings, with a 22% growth rate, which is pretty cheap. Put your stop losses in place, but he continues to like it.

In the space of digital advertising, she owns Alphabet rather than Facebook. The valuation of Facebook has contracted recently, making it appear cheaper, but she is waiting, probably for a year, to see the cost and effects of new government regulations.

I don't know how this company makes money. Why do people pay to see, say, my pictures online? Disclosure: he's never made money in social media. He's not the best guy to talk about this stock; he doesn't understand this business.

He has owned it in the past. It is a great company. The valuation is not as challenged as it once was. He prefers GOOGL-Q to play technology. Trump could impose more regulation on these companies. GOOGL-Q is cheaper on a price to earnings basis and is less risky on a regulatory basis right now.

A pillar of the advertising community, because it’s easy to spend ad money on Facebook. His issue with social media platforms is that people stop using them. FB has stature and management quality. Thinks you’re OK to own it, because it’s not going out of business.

He is responding to a question about the impact of privacy or antitrust regulation on Facebook. Facebook is huge and is wildly profitable. However, privacy issues are not going away, and the regulatory environment can only get tougher, at some point. In addition, individuals are getting smarter, and many younger users are not using Facebook. Some of the alternatives are beneficial to Facebook, but others not. User growth has matured. Management has done a fantastic job, but the stock is still priced for significant growth. If the stock misses earnings by even a penny or two, investors might see a 10% to 15% drop in share price, and that could be a time to buy.

Internet stocks tend to do well from September to end of year. Technically, had a significant negative reaction to earnings. Going to be a lid on the stock until the recent gap gets closed. Nothing special right now.