META
💰 Meta is highlighted as very interesting, trading at an attractive valuation multiple (around 19-20x) compared to peers, especially near its 26-week lows.
🌊 Compared to Amazon, Meta exhibits more stable and predictable free cash flow generation, resembling a ‘clockwork’ pattern despite necessary investment periods.
👓 Meta is strategically investing in hardware and wearables (like Oculus) to enhance user interaction, gather more data, and compete in physical tech spaces, similar to Apple’s approach.
@bernardodegarcia:
“Meta, which was also in negative territory today, is trading at 20, at 19. Very interesting, Meta, very interesting. Look at Meta. Meta yes, Meta yes, yes. Meta yes. Right now it’s trading practically not at 52-week lows, but probably 26-week lows. Meta is trading at 19 times earnings and a bit below 25 times EV/Free Cash Flow, which is a pretty good price, especially considering the business model, the speed of its revenues, etc. How fast is its free cash flow growing? We see Meta much more like a clock, toc toc toc toc. Yes, we had that drop in capex increase, very similar to Amazon’s, but in the end, it’s rising. Meta wants to get into the zone of having hardware, having something physical the client can interact with, and Meta, again, extracts more data from that client to then, internally or externally, selling the information to third parties, which is Meta’s main business model, to make more money.”
Watch the exact part of the video where @bernardodegarcia talks about Meta Platforms here:
Watch the video on YouTube
Read more articles analyzing Meta Platforms (META) at the provided link. META stock.
