Meta Platforms, Inc. (META)

(Market Call Minute.) You have to close your eyes and hold your nose and not look at the valuation. This is strategic virtual real estate that you are buying.

The growth rate on this company is substantial.

Has been able to create mobile revenues, one quarter after another. Trading somewhat richly, but given their history of being able to execute on their plans, she likes it here.

Free cash flow in 2009 was $122 million, and it is now $6 billion. Chances are the company should continue to do well with what they are getting into now. He would tread very gradually into the stock, such as half a position, and then see what happens after that.

Has liked this from the beginning. Since it has rallied back above $100, it is very difficult to find a spot where it has spent any real time anywhere.

Internet media is one of the key themes. This one looks very, very attractive. They are doing a great job in mobile and on the desktop as well as in video. They are growing users monthly. Payments are going to be bigger, only about 5% now. PNQI-Q includes a basket of these companies, also. You should have exposure to this theme.

Looking at the charts, what can’t you love about this stock? It just consistently goes higher, and recently went into an all-time high. It is outperforming the market and is in an upward trend. However, it hasn’t been around long enough to do a seasonal analysis. You normally need 20 years of data for seasonal analysis.

This is all about the ecosystem, video, ad spending, and wrapping themselves around social networking. Have done an extremely good job on the video side. Finally, ad agencies are moving away from print, TV, etc., towards digital. He has a $135 target price on this.

This is really at the heart of a lot of the social media, and the new wave of interaction. The amount of data they have is off the Richter scale. Not a cheap stock. Has a lot of baked in performance that they are already anticipating. Forward PE of 33, and a trailing of 73, so it has a certain amount of expectations built in. When you get into companies this size, the chances of them getting into higher multiples becomes more challenged. Doesn’t think you are in danger if you own this.

(A Top Pick Aug 18/15. Up 34.8%.) He wrote a Covered Option that did not get assigned, which means that the stock went in and the option expired worthless.

The future is very, very bright. You are paying up on the expectation of future growth. Their numbers are astounding. They have 1.65 billion monthly users and well over 1 billion of active daily users.

This is a dominant business in advertising, and he thinks that dominance is going to continue. They are smart people. The business is a very, very good one and well-managed. He doesn’t like buying high multiple stocks though, because the slightest little hiccup can send them tumbling. Trading at 34X forward earnings which is rich.

This has to have a lot of growth and momentum behind it, but it trades at quite a high multiple relative to others. There is also high expectation that if they miss it can easily come off. (See Top Picks.)

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%.