Bullish on META; leadership in aligned AI driven by Zuckerberg's platform experience supports a thesis that current valuation (forward PE 20.71) is cheap with room for expansion to 25-26.

Just a few hours ago, Mark Zuckerberg, the CEO of Meta, just posted something that in my opinion showcases why he might be the leader in this AI story.

And I want to explain a little bit more in today's episode share three stocks that I believe can benefit from the strength of Meta.

So, I do believe that Mark kind of has within Meta and the social and advertisement platform is actually translating really good to the AI space.

Mark's words, people won't want to use AI agents that are misaligned with them and that don't do what they asked. So, labs have a strong natural incentive to make their models more aligned.

But, Mark Zuckerberg is saying, "If I had a product that came out and didn't do what my customers wanted to do, then I wouldn't have a product, right? No one would use it." So, just financially, that's already an incentive to have a great aligned product.

Then they He also also that labs face significant liability if their models cause harm. So, they have a strong incentive to prevent this as well. He goes on to say, "Meta delayed shipment of Muse for several months to focus on safety and security.

We didn't call for everyone else to do this before we would. We just did it as part of our day-to-day work because it was clearly the right thing for people and for us. Engaging independent evaluators and advisors is industry's best practice.

MSL already does this today in several areas because it helps produce better works. Other labs can just do this, too."

I think this was such a great response by Mark Zuckerberg, and it showcases that there is levels to being a CEO.

when there's already big players and the people that are just doing it the right way like Meta Platforms. And and again, I do believe the experience that Mark has with its social platforms and with the advertisement business gives him some experience on how to create some form of AI that is more aligned.

Because they on a first-party basis and first experience know what happens if their products are unsafe. Know what happen if their products don't do what they're supposed to do.

You have a mixture of liabilities, financially significant liabilities that can hurt the business, and then also Again, you don't have a strong product, you're not going to have demand for that product.

I I actually have become even more bullish on Meta Platforms. Luckily, in this channel we have talked about Meta before, right? Meta is numerous times, especially it was while the stock was below the 600s, in the 580s.

If you kind of go back through most of the summer, it would be almost impossible for me to do a week a weekly episode or for you to find that episode within the week where I didn't talk about Meta, all right?

Because I believe the story that Meta was one sitting at cheap valuations, but two, I also believe that Mark's story of being able to sell AI tokens was really possible.

And now with Muse being up there and really showcasing the strength and them having the massive compute, I believe he will be able to sell tokens that are great value.

And Meta sitting at a market cap of less than $2 trillion is still pretty cheap in my opinion. So, I like it now, but I liked it a lot better at 540s, 550s, 560s.

If we look at valuations, Meta right now is trading at a forward PE ratio of 20.71. At one point, it was closer to 17.

So, not much not crazy crazy growth out there, but I still believe there's multiple opportunities for this stock to go to a forward PE ratio of 25, 26. And that alone is still what 20 or 30% rise just on valuation expansion.

And that's not counting if you got massive growth in the revenue from them selling tokens. And and from their agentic tools and from news overall.

Alexander Wang also kind of posted he said, "People and businesses will only use agents that are aligned with their intent and values. If we do not build models aligned with people and business, then they will move to more aligned options.

Every lab should have strong governance frameworks across training and deployment."

I Meta really jumped a lot today in my opinion. Again, already very bullish in this company. I was one of the maybe few content creators that was talking about Meta in the low 600s.

And for the reasons that I found bullish. I did believe that they would be able to sell AI tokens and I think that is going to be a scenario for sure.

And now seeing this, right? Kind of seeing this weakness and fear that other CEOs in this AI space are in, you went from a few billion-dollar company to now being trillions of dollars of companies market worth in just a few years if that, maybe even shorter than that.

So, there is they had to learn a lot and luckily for Meta, Mark has been in this side for a very very long time. And it's been trying to develop stuff safely with their overall products. So, I really really do like that.

Now, I want to take a closer look at three stocks that I believe can benefit from this. I do believe the first stock is Meta. Like I mentioned, right? Meta right now is sitting at some really great valuations of 20.71.

Obviously, meta has a strong partnership with Nvidia and some other players as well, but I do believe the benefit from AMD and the partnership from AMD will actually help them grow dramatically in forms of top and bottom line numbers.

Uh so, there were three stocks that I can be- I believe can benefit from Meta's strength in the AI story. If it continues, it would be obviously Meta, it would be AMD, and it would be Qualcomm just between on the compute that they need and the certain types of partnerships that they have with each other.