Meta Platforms, Inc. (META)

This has totally disrupted the media business. It and a number of other players, have built a model where they are able to bypass the old distribution network, and make the customer the retail individual, and go directly to the original supplier of products. Therefore, the supplier can cut out the distributor and Facebook is able to capture the advertising revenues. Virtual reality is going to be a big thing in the augmented reality, which is really just coming out and people are beginning to understand the commercial applications of it. Growing at 26% and trading at about 25X earnings, which is not expensive to him.

Very, very high ROE, as well as growth rate. This is one of his larger positions.

(A Top Pick July 13/16. Up 9.77%.) He still likes this. You basically have Facebook and Google owning the online digital ad system. They continue to add monthly average users.

The growth rate is attractive. 35% revenue growth, 26 times earnings. Typically the PE is higher than the growth rate.

(Top Pick Sep 14/15, Up 39.66%) Grew revenues 59% last quarter, 52% previous quarter. Last quarter they had the highest increase in subscriber base (15%) in three years. It is still attractive.

Value wise, it is very hard to buy this company, but it is very clear to him that 2 people are going to dominate the online advertising business, Facebook (FB-Q) and Alphabet (GOOG-Q). The numbers are exploding. This company has done a very good job of growing the business into, not only mobile, but also the messaging and video side. In the long run, this has the potential to become a much larger company.

A remarkable company. It has 1.7 billion monthly users. They have other incredible brands like WhatsApp and Instagram. What is amazing is that they have all of this information on all of their users. You want to own this because they are targeting specific advertising, digital advertising. Digital advertising last year was 35% of advertising spend, TV was 37%. Digital spend is catching up to TV. This is only going to get better at monetizing that giant subscriber base. Google (GOOGL-Q) is as well. You need to own both of these companies. A great long-term hold.

Online advertising, and she likes that space. Doesn’t own this because of valuation, but owns Alphabet (GOOG-Q) instead. She likes the secular growth in this area, but feels Alphabet trades at a more reasonable valuation.

Unbelievable company. He regrets selling it. ROE is 22% which is phenomenal for this type of company.

(A Top Pick Sept 30/15. Up 45.77%.) Still very much a believer. They are in their early innings. In their last quarter report, revenues were up 59% and earnings tripled. They have 1.71 billion of monthly active users. Mobile is becoming a bigger and bigger part of their business now, over 80%. A growth story, and slowly but surely growing into its price. This has lots of runway in front of it.

He likes it. It does not pay a dividend so he does not own it in his fund. It owns some very valuable properties such as Instagram, which is the growth engine. They spent a billion dollars to acquire Instagram and 4 years later it is one of the fastest growing platforms. They also own Whatsapp. He sees upside, but growth will decelerate. They are investing in the trends of tomorrow.

She likes this. She sees very good earnings and revenue growth coming. Has decent valuations. This has a very strong management team, and has really been able to execute on all their plans. This is the kind of great long-term holding that you want.

(Market Call Minute.)

(A Top Pick Aug 27/15. Up 39.26%.) In the social media space, this has a very strong and considerable competitive advantage. The catalyst with this is what is going to happen with Instagram to monetize that space. WhatsApp is another business they own, and they will be able to monetize that business as well. Ever since this company IPO’d, they’ve only missed one quarterly earnings expectation.

Have in excess of 1.2 billion daily users. Very strong ROE generator. Even though the stock price is probably a bit overvalued, and the PE ratio is in the 70%-80% range, they are at least backing it up in earnings growth. Doing a great job of assimilating their acquisitions into their social media empire. He likes this a lot.