Meta Platforms, Inc. (META)

From a valuation perspective, this is not a stock he would own as the metrics are too high for him. When you talk to advertising and Digital media people, and ask where the advertising dollar is going, it is really just going to 2 places; Google and Facebook. They really have a stranglehold on Internet advertising. As print media disappears, it is all going to these 2 companies. They have some real momentum behind them in growing their businesses. The risk from a valuation perspective is if people start seeing this as a media company as opposed to a tech company.

He really likes this. Growth is continuing to be very explosive. They have a very unique type of marketing and advertising, and continue to monetize the various types of things they have. Shares got a bit weak after the election and fell below the 200-day moving average, but not by much. Now it is back above it and the average is very, very positive. Trading at about 30X earnings and growing at a 30% clip.

This has largely been in an uptrend. Most FANG stocks are kind of keepers. Whenever they dip down, so long as they stay on the trend line, that is usually an opportunity to Buy. You want to make sure that the highs and lows are getting higher, which this one is most certainly doing. Probably not a bad time to be picking some of this up.

This has done a phenomenal job. Believes it will be the largest market capitalization stock in the US in the next couple of years. There are 1.8 billion monthly active users. When they went public, they had zero mobile advertising revenue. It was 84% of their $7 billion in revenue last quarter. They keep beating expectations. Margins are rising. The apps they don’t have, they keep buying. You are basically getting this at around 21X 2017 and about 18X the forward year. Even if you gap-adjust that it is still in the mid-20s. (Analysts’ price target is $154.71.)

(Market Call Minute.) This is not for him. Too expensive.

He started buying recently because it looks cheap based on 2018 numbers. It is trading at a slight premium to the market multiple. They generate gobs and gobs of cash flow. They are in a duopoly with Google. (Analysts’ Target: $154.45)

Chart shows a strong upward trend from 2013, but recently there was a pullback. However, it is still intact and we are still in a trading range. If there is a pause for the financials and industrials, you will see technology start to pick up again. This stock is still valid. It hasn’t broken down yet.

(A Top Pick Dec 10/15. Down 100%.) Bull Call Spread. On this he was buying the call, selling a call at a higher strike, so he had a debit position. The stock didn’t go up, so you lost the net cost of the spread.

(Market Call Minute.) 1.7 billion active users. Many untapped opportunities, such as artificial intelligence, video, virtual reality, in front of them.

The selloff from the Trump election is a great entry point for anyone who has been watching the stock and looking for the time to buy. Last quarter, revenues were up 56%. Next year revenues are expected to go 35%, earnings per share 27%. For that type of growth, you typically have to pay a pretty rich multiple. Because of the selloff, it is currently trading at 23X next year’s earnings. They have room to expand. The average Facebook user in the US generates about $14 in advertising revenue per month. In Europe, it is about $5. In Asia it is $2. (Analysts’ price target is $155.10.)

One of the ones that hasn’t participated in any meaningful way, and had a few stumbles of late, but when you look at the franchise, it is incredible. They have huge margins of over 60%. They haven’t really done anything with video advertising. You have 1.7 billion people who are active monthly users, a huge number. They’ve really proven that they can monetize mobile, and really are the place to go online. Now is a pretty good time to get in, when you have had large cap tech really not participating in this rally. (Analysts’ price target is $55.10.)

FANG stocks have been under pressure. It recently had a big move lower, and one day it didn’t even trade. The major moving averages are moving lower, so should you even be here? The opportunity to buy this now is just not present. However, there could still be a longer-term potential. (See Top Picks.)

Management just announced they are buying back $6 million worth of stock. Thinks they have looked at the stock and seen that it has come down a little. Stock is trading at 23X earnings, which is not cheap, but probably has over a 30% growth rate, which puts it at a PEG ratio of .7.

(Top Pick Nov 2/15, Up 12.79%) A great company. With the numbers and the users, it comes down to a monetization of the site.

It comes down to the number of users and monetizing that. Whatsapp and Messenger are the drivers. No dividend. (Analysts Target $155.14) He is happy with the move to video.