Camp B: The Bargain Hunters. This is my tribe. We look at the pullback & see a golden opportunity. Why? Meta is the cheapest of the Mag7 with forward P/E ratio of 17.2x. In contrast Tesla is 95x.
Wall Street is pricing Meta like a slow growth legacy utility company, while its platforms are generating double digit revenue growth.
Meta's AI already has over 3 billion daily active users. Meta's advanced AI models are optimising ad targeting in real time, boosting aggregate ad revenue.
By making Llama open source, Meta is effectively encouraging the rest of tech ecosystem to build on its architecture.
Waiting to 2027 to see definitive results is too late if you want to catch the bargain pricing.
Meta is a great stock to buy & hold long term.
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- NormaHansen·08-28 17:32Cash flow is still the part I can't wave off. OCF growth is slowing while capex keeps getting pushed up, so 17.2x doesn't automatically scream cheap to meLikeReport
- BorisBack·08-28 17:32Quest 3 and the whole AR VR stack get ignored way too much. That ecosystem angle is why 17x still looks cheap to meLikeReport