Meta Platforms, Inc. (META)

If he had to pick 15 companies, one of them would probably be this. They have created such a defendable business model and subscribership and number of users, and have only really just started to monetize it, using it to generate revenue. What makes it most unique is that they know more about you than anybody else.

This is an example of how he would love to buy all of his stocks. In August 2015, the market had the flash crash and he picked this up at around $80-$85. He is really positive on the name in terms of its future growth. They have Facebook, Instagram, Whatsapp, etc. that really haven’t been monetized yet. Once that starts to push over, he thinks it will drive revenue per user. It is really a changing media Avenue. Not cheap, but they are growing at about 30%-35%.

This is in the epicenter of a big secular theme in social media. They have a tremendous platform and have got an unbelievable subscriber base, and have the ability to monetize all of that through advertising and all other sources of revenue. Thinks they will make a big push into payments and e-commerce, which will also be very successful. Have made a great move into mobile. This is a company that almost every portfolio could own.

The model price is $71.37, a 32% negative, but what you really have to look at is how fast that model price is actually going up. They are doing well over $1 billion a quarter. It’s amazing how much earning power this company does have. If the stock got to $101, he would be a buyer.

(A Top Pick Nov 17/15. Up 3.83%.) 82% of ad revenue is coming from mobiles. Grew free cash flow 68%. About 10% of cash flow is offshore, and 90% of it is available. While they haven’t put a lot of that to use in terms of capital return, they are still in an investment cycle. What they have going for them is growth, revenue, subscribers, and they are investing in technologies. Monetizing their user base of 1.6 billion people, and still growing it.

It does not pay a dividend so he does not hold it. If you want to own a business that is exposed to how society is changing, this is one of those companies. This is the ideal virtual real estate to operate in. FB-O is essentially a toll collector for the entrepreneur. He believes there is a support level at $74 so buy there.

Where would you put a stop loss? This has great growth metrics and good catalysts ahead. He likes stop losses at around 10%-15% below the 200 day moving average, so that he is not whipsawed out of it. He is probably looking at anywhere between $80 and $85.

She tends to look at all of her investments from the standpoint of risk, and she is not really comfortable paying the multiple you need to own this.

(A Top Pick Feb 25/15. Up 32.3%.) The monthly average users is now 1.59 billion, and their daily users are over 1 billion, so the opportunity for reach is spectacular. This is a company that really can’t be analysed on traditional metrics. Hugely expensive and it has to grow into its earnings.

In many respects they have a better mouse trap from an advertising perspective than what Google does. Management is fearless and clearly a visionary. Strong balance sheet and rapid, rapid growth. Trading at 30X earnings, so it is a little bit rich, but they are knocking the ball out of the park. Thinks it could be the largest company in the world in a couple of years.

They continue to grow their user base and are currently at 1.55 billion at this time. Continuing to build out their other franchises such as Instagram Messenger and WhatsApp. Their competitive advantage in the social media space continues to be strong. Very strong global branding. Also, have very strong access to user data, so they can advertise to that.

1 in 7 people globally are on Facebook. They have over 1 billion active users on a daily basis. There is also WhatsApp (their communications app), Facebook Messenger and Instagram. It really comes down to when they start to monetize those vehicles.

Stock vs. Stock. FB-Q vs. V-N. FB-O has not been around for 20 years so you can’t do a seasonality chart. The stock is hanging in there while the market was actually going down. If it goes above 109 it will push it into all time highs. V-N is considered a technology stock as well and does well until the middle of February. Chances are good it will break to new highs. Buy now for a seasonal trade.

It is a very high multiple stock. She would shy away a value investor and turn to V-N.

Still really positive on this company. Very well positioned. Have done a great job of commercializing their business. The time spent on Facebook is disproportionate to the amount of money that advertisers spent in their favour. There is still a fair amount of white space for them to grow. They have an unrecognized growth in Virtual Reality. The Consumer Electronic Show is coming up next month and it is going to be all about Virtual Reality (VR).