Meta Platforms, Inc. (META)

Likes this. Trading at a pretty decent valuation at about 40X forward PE, but the growth rate is still very high at 25% plus. The PEG ratio is at around 1.5%-1.6%. There are lots of things happening in terms of their messenger service and their Instagram service. Before buying, you want to look at where the markets are going over the next little while. There might be an opportunity to get it a little bit cheaper, maybe at $100.

This is going to be a volatile stock. It is not cheap, but is growing very rapidly. Growing earnings at about 40% a year and trading at about 35X earnings, so its price to earnings growth metric is about 1X. Highly innovative company. Feels people are underestimating how much advertising revenue is going to start kicking in from Instagram. Probably not more than a year away from starting to monetize Whatsapp and Instant Messenger. They are going to get into shopping through Buy It Now buttons.

You can buy at these levels for a long term hold. Probably the most exciting Internet play out there, which is saying something, because their competition is stiff. Their model lines up alongside other models. They have 1.55 billion monthly average users, and over 1 billion daily average users. The future is bright.

Hadn’t believed that they could monetize the ad growth that they did. They have 1.5 billion users which is growing 14% year-over-year, if this can be monetized somehow. 57% FX neutral advertising revenue growth with 54% margins on that. 84% free cash flow growth. About a 3^rd of their assets are in cash equivalents.

The numbers were fantastic. They beat on every level. About $4.7 billion in revenue. The earnings beat as well, $0.57 versus $0.52. More importantly, the growth of engagement was fantastic, 1.55 billion average monthly users, and over 1 billion average daily users. Have started to monetize some of their other initiatives. This is a stock that you shouldn’t pay too much attention to the detail of the numbers. Just stand back and look at the broad strategic opportunity.

The Internet group is performing extremely well. As a company they are doing a great job of monetizing the traffic that goes through their site daily. He likes the US market as well. This sector is attracting new money.

1 out of 7 globally use this company. This is the most known platform. You have Instagram and Whatsapp. It really comes down to how they monetize that user base. Their user install base is large enough that when they do start to monetize these things, their growth per user will increase. They are growing into their valuation.

Starbucks (SBUX-Q) or Facebook (FB-Q)? He likes both. They are both very strong stories for different reasons. This company’s strength has been that they are not only the leader in social media, but have grown their revenues very substantially from mobile applications. This is a very, very strong name. Both companies have very exciting growth stories. If he had to make a choice, it would probably be this one over Starbucks.

He would still buy it here. They will be a dominant player. The user interface and the number of users are phenomenal and they continue to monetize them. He would own it as a pair with Google (Alphabet Inc) GOOGL-Q. He owns both.

You are investing for capital appreciation. If you go back two or three years ago, it was the ability to monetize. It has been an interesting growth trajectory. At this point they are coming through. 53% free cash flow growth. It needs a bit of a push to breakout, but they are doing the right things.

He got this wrong for so long. They have done a fantastic job and now have a big revenue generating machine. Instagram should start to generate real revenues this year. He appreciates the strength and diversity of their user base.

They have 1.5 billion active users. It is monetizing its initiatives at an attractive rate. All their apps have large numbers of active users. A huge amount of their advertising revenue is from mobile users.

It is here to stay. It is dominant and growing. They have half the Internet users in the world and they are on 20-40 minutes per day. There will be less and less reasons to leave it. They are successfully monetizing their subscribers. Earnings will be up 33%. It is comparatively cheap.

The US market is a bifurcated market, and if you have growth, which this one does, the market loves you. It’s where growth is and they are going to beat their earnings estimates every quarter.

About a 50% growth rate. Hugely profitable. Gross margins and net margins are extremely high. Other than Google (GOOGL-Q), this company has really got mobile and advertising in a tremendous way, and as time goes on, both Google and Facebook are going to continue to grow their advertising revenues. They are just now beginning to monetize Instagram. Investors are completely underestimating how attractive the Instagram model is going to be for corporations to advertise their products.