Meta Platforms, Inc. (META)

(A Top Pick April 19/17. Up 26%.) One of the stocks you have to own. They are capturing market share and growing rapidly. Growing at about 50% per annum.

Great company. Last quarter they had earnings growth of 24%. They are doing all the right things. From a seasonal perspective, Technology are strong from October until January. We’re in a solid pattern here, no resistance up above, this is positive. It’s seasonally strong and technically hasn’t broken down. This is good to go right now.

Trading at a fairly reasonable valuation. Expensive at 30X forward earnings, but not bad considering that they have 1.6 billion eyeballs, in so many ways to continue to monetize. This is the future. There is more to go.

Which of the FANG stocks do you least prefer? She probably wouldn't sell any. Would look at the valuation levels to see which were the most onerous and possibly trim back on the one that is the most elevated. Facebook (FB-Q) is probably the one most richly valued.

PE is probably in the 40 range. Grew 50% in the last quarter. Even if the growth rate slows to 20%, it would only take a couple of years to eat through that premium and it will have a great run. There are hundreds of billions of dollars of TV advertising left, which will gradually roll into this and Google in one form or another. A great story.

The world’s largest online social network with over 2 billion active monthly users, which is double the 1 billion they had just 5 years ago. Their ecosystem is fantastic with Instagram, Facebook, Messenger and WhatsApp, etc. With the users and the usage time that is happening on Facebook, more so than on any other social network, they’ve got the largest audience, and the most valuable data for advertisers. The ad revenue per user is growing, which means the advertisers are seeing value with what is happening. He’s bought more on the recent pullback. Trading at 24X earnings, which is near its historical lows since the IPO. They’re estimated to grow earnings by 25%. (Analysts’ price target is $213.)

Doesn’t own this, because it always looked expensive, but it is a company that deserved its multiple. It is unbelievable how they keep on driving double digit revenue growth, huge earnings growth and cash flow growth. This is one of those stocks that is priced for perfection.

(A Top Pick Nov 28/16, Up 51%) He buys for new clients with new money. He would open a new position. It is growing faster than people expected and hitting the top end of their guidance. As they increase ad supply, the ad price continues to go up. It is in a very strong position to continue to grow. There is always a fear of a rollover of subscribers but a lot of growth is coming from other countries and there is always Instagram.

He likes it for its ad growth. They are growing revenues at 45% and the bottom line at 38% while trading at 31 times earnings. The exit strategy would be to watch for the growth rate declining. (Analysts’ target: $210.00).

You have to look at the future when buying this company today. It isn’t cheap on earnings, but he doesn’t know any company that has perfect balance sheets like this has. Growing revenues and earnings by 40% per year. They are thinking multitudes in different lines and operations, and he is excited to see what this does. It’s the world’s greatest network. The acquisition of Instagram is now paying off dramatically. This has a place in your portfolio. You may even want to own Google (GOOGL-Q) at the same time.

(A Top Pick April 19/17. Up 26%.) He continues to like this. All lights are green. $200 billion of advertising has moved from TV to Facebook. Only trading at 27X earnings.

(Market Call Minute.) This is growing very, very rapidly. Even though this is a mammoth company with over 2 billion active monthly users, they grew revenues 47% year-over-year last quarter.

Mark Zuckerberg seems less concerned with expenses rising in the short term. When they went public, they had zero mobile advertising revenue, and in the last quarter about 80% of their revenue was from mobile advertising. They and Google (GOOG-Q) own that market. They've monetized their base fantastically. Still a good, long term hold.

This is part of that group which has been kind of driving the market. The stock has been in an uptrend, but has had normal corrections. From 2017, there have been very few corrections, so it has been relatively un-volatile, which is not healthy. You are going to get some kind of pullback sooner or later. If you do get a 5%-10% pullback, then you buy this.

If they can get advertising through video right, then the stock can go higher, and they can get room for growth. It is hard to bet against a visionary like Zuckerberg. The company and the stock can grow higher, but what is the right valuation to pay for it? At 30X earnings right now, it could be a bit too rich.