Meta Platforms, Inc. (META)

Great opportunity. His 12-month price target is $825. Got hit (and rightly so) because it surprise-announced that $15.5B tax bill, which it didn't think was significant. But everybody else did. So much going for them with AI-driven engagement on ads, infrastructure, and consumer platforms. 

Hidden gem is WhatsApp. Yield is 0.33%.

(Note the short timeframe.)  Still bullish, even with the selloff. For those who might not own it, great opportunity to get in and she added for new clients. Ad spending remains strong. Historically, its big investment cycles have paid off. That tax charge was a one-time hit. Sees over 30% upside from here. Fundamentals rank 9/10.

Not a fan. Ethics of the company are not good.

A way around this is to own EssilorLuxottica, which he does. Makes the virtual reality glasses for META. Less volatility. 

Not extremely priced, but reasonably priced. Between 20-25x PE going forward. Lots of great underlying growth. Gushing cash, and sees that ramping up. Spending a lot on AI. Whether AI works or not, still going to be gushing cash from its other businesses. GOOG has taken off, while META has actually dropped quite a bit. 

Much maligned, down 15% the past. If Meta is spending too much on capex, they can put the brakes on that and earnings will go up. But even with their capex spending, it's still selling at 18-20x PE. It's a great buying opportunity here. In AI, you can't wait to spend or else a tech company is late.

Is what Alphabet was a year ago. He totally believes in CEO Zuckerberg, agreeing with the money he is spending because he's defening a moat.

Fell years ago because of concerns about over-spending. Paying 20x forward PE for 15% growth rate, a pretty good valuation for one of the mega-cap tech names. Swept up in this week or two of concerns of an AI bubble. We've seen this story before. It'll bounce back.

Below 200-day MA, but that's happened before (as in April's tariff tantrum). Higher beta. Channel since 2022 is upwards and onwards. RSI is 26%, which indicates oversold at this point.

He'd make this a top pick. Shares have slid and would buy. The CEO is a genius.

When CEO Zuckerberg has a pet project, Meta does not do well. The market is telling him that his new spending is not the best idea.

Mark Zuckerberg is a bit controversial from a management standpoint and there has been concern over the money spent on the Metaverse and too much money spent in general on Capex. However he is now diverting more money into more immediate opportunities. Historically speaking , don't bet against him. The stock has sold off and trades at 21X earnings.

Meta's drop this week shows there are consequences for overspending in AI capex without a coherent strategy. Has fallen 24% and up only 3.4% this year. Reels, for example, shows that Meta does a great job of incorporating AI into their products and using AI to help their suggestion engine, which leads to revenues. But there have been 5 restructurings of their AI team this year and are buying small companies to gain AI talent. It's healthy for investors to question the AI spend by companies.

Isn't selling his shares during this 24% pullback. Post-earnings, the market sold Meta first and asked questions later. Meta is up only 3.4% for the year. He would add shares in more weakness.

Poster child for negative reaction to AI spending and the productivity of that spending. Implements AI through existing platforms, which drives advertisers to those sites. Can demonstrate to advertisers how productivity will improve. Ad and revenue numbers are good, yet only trades at 20x forward PE. He added on recent weakness.

Last week beat on top and bottom, growth rates were great, margins were higher, raised guidance. Street wasn't disappointed, the problem was it announced $15.6B tax bill. That's a lot of money, and they should have pre-announced it. His 12-month price target is $805, and used recent weakness to add.

So many horses in the race. Probably one of the more robust machine-learning capabilities out there. Buy here, another third ~$600, and the final third ~$575.

When they reported a strong quarter last week, shares were hammered, perhaps because they raise their capex dramatically, from $66-72 billion to $70-72 billion while total expenses will grow "significantly" faster. Shares plunged 15% in one week. This is unfair, because peers including Alphabet and Microsoft are also spending a lot on AI. He believes that the market is flashing back to the CEO's expensive Metaverse overspending a few years ago. Also, Amazon and Alphabet did a better job in explaining why they are spending more.