Bullish on Meta due to strong free cash flow generation, low valuation (20x), and leadership in AI initiatives despite spending increases.

leveraging its early buzz as it faces new competition from giants like Meta.

Meta's got about a percent and a half here.

It's been an especially good week for Meta which is leading after their Muse AI uh agent. You you have you still have Meta?

Right. Um, this has been a pretty pivotal couple of weeks for that stock. No, I think so. And I think it's been interesting to see how strong it's actually turned out. But like, you know what I come back to on Meta?

I always just come back to the numbers. And they're still generating huge amounts of cash now. Yeah, they're going to spend that. So, they're they went from 5 or 7% free cash flow down to zero, but it's for all the right reasons.

Still only trades at 20 times. It's down like 2% on the year, so it hasn't had some big run. And, you know, they're going to try and sell these paid subscriptions for Muse. I don't really know Muse.

I don't know if that's going to work well or not. We'll need to see. But they they just keep doing things efficiently, which is what I worried about all along. They keep doing they keep being at the forefront of the curve in terms of what's coming.

And you kind of need to just give them credit for getting it right and and not not being

Is Meta going to get ROI on Muse? Hopefully. Am I bullish Meta? I am bullish Meta. I think they've got a really good support around the mid 500s. You know, it's up a 100 bucks since then.

Um but uh is that a guarantee? That's not a foregone conclusion. Yeah, it' be a little diversified.

And the key of what you just said is throughout the course of this year. And we need to remember that Meta had a huge year last year. And I think for >> Yeah. After it had the like after its worst year ever, it had its best year ever.

Right. But it's also if you remember back um you know and it's funny because I remember talking about this with pull a threeear pull back a threeyear while Jenny's talking if you want pull it back to a threeyear or remember I remember when Brad got super involved in this when Brad got person got super involved in this was that 21 or 20 the stock was at like 90 you know or 80 or something so in the past 6 years we've we've been up a th000%.

It is okay for individual stocks and it's okay for the market just to consolidate and I think that's really what's happening. I mean, they're still have they have huge ad a huge ad growth business.

The growth rates are huge. Um, so we we'll see what they do.

I think there was more questioning than consolidating to be to be fair. No, I think I think that I think that's the overriding view. I I don't think this was merely a consolidation.

It was like, do we believe in the direction that Mark Zuckerberg is taking this company? It's Shannon shaking her head. Yes. Tell tell me more.

I I think that's undoubtedly what the market was saying. This wasn't just a hey, let's consolidate. It was like we're not sure that we believe that they know where they're going.

We saw this. We saw the same thing. I don't think they I I don't think they exactly know yet, but I think Zuck has this really good tendency of pivoting uh and they make so much money from ads.

They have the latitude selling potentially selling compute. Not only does it you put into question the amount of uh capacity that they have

I think big beneficiaries will continue to be stocks like Apple uh and Meta as as a recovery play.