Meta Platforms, Inc. (META)

Serious momentum in the last month and a half. Is a momentum name so doesn’t fit his formula. It’s a bit too rich. Watch out for significant costs over the next few years to build out. It’s a new world so you understand as much as you can about this sector. Thinks Twitter IPO will come out on pace with FB but he probably won’t buy it.

Thought it was undervalued a little when it was starting to get the mobile revenue coming in, but he is a little astounded at how well the stock has acted. He is still Holding and hasn’t added recently. Thinks they have a good market niche. To own this one, you really have to believe in the future.

Buy the stock and Sell Dec $52.50 calls at about $3.30. The option premiums on this stock are very expensive right now. If it is called away, your return is about 10% over the next 3 months. You have some downside protection, so you reduce your costs down to about $45.70.

There is no question that they have a lot of viewership and are monetizing but valuation is very high. Very competitive space. Had a big, big run and there will be more insiders selling as the lockups come off. He’d rather own Google (GOOG-Q) that is trading at a very reasonable price multiple of around 17 times.

He wouldn’t regard this one as an investment, but more of a trading stock. Chart shows a sideways move from December to July followed by a breakout. If you are trading, you can use short-term moving averages. As a day trader, you would be looking at 15 minute charts. The patterns on these are the same as you would see on a daily, weekly or monthly charts.

This is a stock that he would not own. Too many changing dynamics as to what the IT stock is and this one is the IT stock right now. Doesn’t understand where the advertising pop is happening. Has been a lot of enthusiasm around their mobile strategy. Thinks the Street is looking for someone that can monetize the advertising space in mobile but he is not sure this is it. Looks very expensive.

Has zero interest in this. Doesn’t buy anything that hasn’t been around for at least 10 years.

There is one thing going for this company and that is it is now trading above its new issue price of $38. When a stock is trading above its new issue price, it probably has higher highs ahead of it. If you own, support it with some kind of stop loss and continue to hold.

Sentiment is pretty positive. They had a blow out quarter with revenue and margin growth. They are clearly doing things right. Investors get caught up in great stories because they are exciting. The flip side is the valuation. She can’t get her head around a 60 times this year’s estimate for valuation.

Will Twitter be a problem for my holdings and what is the difference between these 2 companies? Twitter is for the short, snappy, communications. Facebook appears to be monetizing but it is still pretty expensive. If you own, maybe you should be taking a profit if you are looking at twitter and see what they price the IPO at.

User base is enormous and if they can harness that it could be quite attractive. Advertisers that pay them for the mobile platform have had initial success and are likely to open their wallets and really start to spend some money. The next quarterly report could really surprise to the upside.

Apple (AAPL-Q) or Facebook (FB-Q)? He doesn’t like either one of these. On this one. He has never made any money on social media. It’s a space, he does not understand so he doesn’t go places that he doesn’t understand.

Has some hesitancy with a lot of technology stocks. Trying to figure out the durability of some of these franchises can be very difficult. Things can change very, very quickly. Executed better than he expected. Doesn’t know about the durability. A lot of young people are looking at this and saying it is yesterday’s story. The jury is out. He doesn’t have the confidence that they are going to be there and not be replaced by something else.

We are going to see a new issue for Twitter. The company denies this is going to happen but it will be happening. That is going to set a fire under the social media stocks like you would not believe. Likes this one a lot, but much prefers the ETF Global X Social Media (SOCL-Q).

With their last earnings report he became interested, they really turned things around. They easily beat earnings estimates. He would like to see it break above $41.52 and he expects resistance at that time but thinks it goes higher.