Meta Platforms, Inc. (META)

In the short term, it could easily pull back to $150 that we saw earlier this year. What'll happen to FANG stocks in the inevitable recession (within 2 years)? History tells us that high-multiple companies will get hit, which will be new to Facebook.

It has valuable franchises, but he sold it at the start of 2018. Like everyone, he can't figure out the growth rate. There appears to be a decline in core Facebook users in America, which is a worry. Meanwhile, there are increasing costs.
Does the company understand the costs to meet compliance (i.e. to remove hate posts)? He predicts they will find an algorithm to solve this. They'll likely need 12 months to solve this problem. Now, he's concerned about their tone-deaf
attitude to the fears of governments, and to declining usage in some countries.

At $120 he’d be interested. Problem is that expenses have gone up, so margins have gone down. High multiple. If you buy at $150-60, it’s OK for a 5-year hold. Headline risk could create a cheaper entry point.

This stock has raised some eyebrows regarding longevity of tech rally. He thinks it has been oversold and probably not a bad entry point. He thinks the stock is undervalued at these levels. A good entry point for a short term play.

An eventful day yesterday, trading down 20%. His analysis after the Cambridge Analytica scandal suggested buying near $120 would be a good target. Their head count is up 45% and the AI investment will take time and money. If you own it, hold it, but he is waiting for better value.

Last time FB had a big drop, it continued dropping. Stable today. Technically, not an entry point. Be very, very careful with a stock like this. Any stock with a big drop, have to wait until it forms a pattern. Support is about $165, if it breaks that, it’ll go down to $150.

It is an opportunity because he believes in it long term. It could be bumpy over the next 6 months as they have some CAP-X spending to make on security. He will buy when it pays a dividend.

They just guided down 35% margins on this quarter. They are probably being conservative. They have 2.2 billion users. A third of the planet. Trading at 17 times 2020 earnings. You have to own this name as long as you believe they can execute. He wrote a put today. Forced himself to own it at 170.00. He thinks there is more growth there.

He expects Facebook will report a positive surprise. The stock has done very well since the spring. You could take some profits. Advertising is moving from TV to social media. Google just reported surprise earnings, and he expects the same for FB.

He sold it because of March's great uncertainty and the direction that regulators were going into. He's not tempted to get back in. He's happy to hold Apple as his exposure to digital advertising.

Facebook or Apple? Apple's become like a regular stock, not as crazy as it used to be. The sky's the limit with Facebook with so many users. He'd choose Facebook. It's got plenty of upside.

FANG stock so very crowded. Not super cheap. Ad growth better than expected for Q1. He thinks that the street continues to underestimate the potential to monetize their new products. Growing at 25%.

They have 2 billion customers who they sell advertising to. Great earnings growth. When it stumbled to $163, it was a great time to buy. Along with Google, these companies dominate digital advertising. Yield 0%. (Analysts’ price target is $222.69)

It seems the overhang of Cambridge Analytica has passed. But he would far prefer to own GOOGL-Q. FB-Q is the intersection of all of your private life so there is always this data that is out there. He thinks the regulatory overhang for the entire sector is a challenge.

This is a key application software company and is a key holding for him. His 12 month target is $235. He saw the regulatory and privacy issues as a buy opportunity. He will continue to hold his position. The cash flow opportunity is still early with its 2 billion captive clients. He loves this company and would buy on any weakness.