Meta Platforms, Inc. (META)

(A Top Pick Jan 13/16. Up 47%.) Quality management, good metrics and good things to come.

This is firing on all cylinders. There are a billion users on Facebook and are growing on Instagram and WhatsApp. The average revenue per user grew 30% last year. From a valuation point of view, the growth is far and away north of 30%, and the stock is trading at less than 25X, so you are getting more growth than what you are paying for. (Analysts’ price target is $158.)

This has tremendous promise with 1.7 billion active monthly users. If you look at the immense advertising power, it is quite dramatic. Advertising in the digital age is behind the times. We are seeing a lot of money pouring into digital advertising. However, looking at statistics, with about 25%-26% of time spent by us on mobile devices, only 11% of the advertising dollar is aimed at that market. That will catch up, and will be to the benefit of companies like this.

Even though it has 1.7 billion users, they are still growing their user base by double digits. This year revenues are going to grow 37%, and EPS up 28%, and is trading at 25.5X this year’s earnings. Next year, revenues and EPS are going to grow in the mid-20s, and is trading at 20X expected earnings. (Analysts’ price target is $162.)

(A Top Pick Jan 14/16. Up 40.53%.) He doesn’t see where he would need to sell this at any time in the near future. Trading at a valuation of 25X forward earnings, but still growing at a 25% EPS clip. He sees strong growth in the Instagram, video areas boosting revenue. There is future revenue catalyst when you look at WhatsApp Messenger and Virtual Reality.

A really good company. There are 1.8 million active users. Great metrics this past quarter. They are the dominant franchise. They clearly get mobile, which was an overhang. They have a huge amount of things, especially in mobile advertising and video advertising. Reasonable valuation and a great management team. (Analysts’ price target is $162.00.)

Not the kind of stock he likes because they don’t pay a dividend. Had heard someone being very disappointed with their advertising revenue results. He would be cautious on this.

As a value investor, he struggles on how to make an investment case for this company. He understands the magnitude of its membership base and the pathway to monetize that. But even under those assumptions, looking at the valuations on a forward PE or EBITDA basis, it looks very expensive.

One of the great growth companies out there. On gap-adjusted earnings, this is trading at 24X next year’s earnings. Between this and Google, they own mobile services. They are getting a higher user engagement. 1.8 billion monthly active users. (Analysts’ price target is $159.07.)

One of those really well managed companies. It is pricey, but she still likes it. They were able to execute on their plan to increase mobile advertising.

It has a lot of room to go. The metrics are outstanding. They are monetizing various areas very effectively. They are coming out with VR and AI. Their core business is where there is potential. People’s time on Facebook is increasing. 25% of the average adult’s time is spent on mobile, but advertising budget allocation does not reflect this. (Analysts’ target: $153.24).

He is very interested, but hasn’t pulled the trigger yet. It has grown a lot, the price has gone up a lot, but earnings have gone up even faster. Valuation is a lot more reasonable now. It is still a fast grower and still trades at a modestly high multiple in the mid-30s, but it is in line with its growth rate.

(A Top Pick Feb 10/16. Up 26.28%.) Still loves this. Mobile engagement continues to grow. They are now getting into video which is going to have more video, which will have more value per click. This is a company that has a long, long way to run. Trading at a very reasonable valuation.

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.