Meta Platforms, Inc. (META)

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.

Have been delivering phenomenally well in the last couple of years. When you realize they had zero mobile ads when they went public a couple of years ago, and now the growth of the company over 70% of their revenues, they have done a phenomenal job of monetizing their growth. Trading at about 25X next year’s earnings. Still one of the great growth companies out there.

If you were to do a 3.5 year look at this stock, it has had a pretty good move. From here, you wonder how many more people could be sending into Facebook. However, this has proven again to be a good example of well-managed. Revenue numbers were still incredibly strong. If this company plays it right and does some acquisitions to defend their brand and their user experience, they could probably maintain their competitive edge. All of the data analytics is going to work well for this company.