Meta Platforms, Inc. (META)

Just hit a record high. Wasn’t sure that it was going to be the company that would have the staying power to be the next Google (GOOGL-Q), etc. However, it has 1.3 billion users and 1.4 million advertisers. Mobility is just growing in leaps and bounds. Looks very interesting.

Twitter (TWTR-N) or Facebook (FB-N)? Feels that the social media names have stretched valuations. It’s such a new phenomenon; it is hard to tell where the earnings are going to come and how they are going to monetize things. This one is in the 3^rd inning where Twitter is only in the 1^st inning. This one is getting its earnings going, and valuations look a little bit better. Earnings were strong today on the mobile side, and they are executing well. This would be his choice over the two. Neither of these fit the profile of his portfolios.

Somewhat of a unique business proposition, because this has got innovations that have proven to be able to generate revenues. The issue is that the multiple is so high. As a GARP investor it is difficult for him to rationalize this one. Expects you could see a good 10%-15% reasonable result from here.

It is difficult for a value investor to buy. More established than Instagram. It is difficult to say what the downside is on these.

Not over the moon in terms of being expensive. We need to determine where it is going to go and how they transition into mobile. It is hard to determine if the advertising will work and earnings will be generated.

Thought the purchase of WhatsApp for $19 billion was insane. He’s been on the sidelines with this. Never bought into the fact that they were going to be a huge challenger to Google (GOOG-Q) in online advertising. Had a $1.83 of earnings, but that is against a $62 stock price. He can buy Google at under 20X earnings.

Doesn’t think people understand what this company is all about. This is not about posting Selfies or new puppies, etc. It is all about data analytics. Eventually we will be walking by a sporting goods store and will get a message on your phone that there is a sale on shoes in the store and you will go in.

Mobile is where everything is going. 50% of this company’s revenue is from mobile. Had $2.5 billion in revenue. The interesting thing about this is that management is actually showing some pretty good credibility in their core operations. The problem he is going to have with this is that the space is falling out of favour and it will be a bit of an upward climb. Be very careful. Will probably take a peek at this one over the summer months.

They are monetizing it now with ads. 60% of revenues from mobile. Growing at a tremendous rate and owns part of a growing market.

Technology is very fast moving. This is a very new company and already commands a fairly high market value.

Doesn’t follow this closely. It’s a great business but the 1^st number of quarters after their initial offering didn’t perform that well. Expectations today are probably a little bit higher because the last few quarters have seen better results. It is tough to go against a company that has built as much value as they have over the last 10 years.

(A Top Pick April 2/13. Up 138.08%.) Had avoided the IPO, but when it dropped below $20, he got into it. He could see that a lot more activity was going on in the advertising front. Has dramatically reduced his weighting after their 2 big acquisitions.

Has done incredibly well and is massively overpriced. Has made a lot of acquisitions over the last little while and paid a lot of money for them. Finds it very hard to understand this company as a business model because there is just not the need to buy things. Advertisers are there because they have a billion people, but not sure people are looking at that advertising. Doesn’t expect this will be would grow like Google (GOOG-Q) which has grown incredibly well.

Acquiring Oculus for $2 billion, a company that specializes in virtual reality. $400 million in cash and the rest in stock. This is concerning. “Drunken sailors going out and spending their months pay in one night.” Thinks this is illustrative of a very expensive stock and a CEO who has full reign and knows he has a currency and who has to compete against Microsoft Gaming, Google, Apple and everyone else. This is a gaming platform. This concerns him.

Fascinating company. Doesn’t own, but if he did he would probably Sell. They’ve had a bit of a miraculous recovery last year and their financials have come in better than what he had expected. One of the giants of social networking but he worries about this franchise longer-term and about the sustainability of what they are doing. Very, very expensive. There are safer places to play.