META

So, the first trade setup we're talking about is Meta. And as we know with downsloping trendlines, what do they mean? Well, it just generally means that the stock has been in a down and consistent downtrend.

Now, attacking this upper trendline, should it pierce, break above, and confirm, guys, it certainly favors a move higher up to, you know, maybe the next resistance level here on $750, 77744, and then potentially towards double top around 800 bucks. But it all starts with this trend line.

Meta has finally gotten out of the uh I would say rain clouds when it comes to all the, you know, uh regulatory pressure. Some of these settlements are behind them now. Muse Spark 3 is performing extremely well.

I love where Zuckerberg has the company directionally headed with open source and performance there.

And this is the one. This is my sleeper. Meta. 32 lawmakers. Just letting you know Microsoft is almost twice Meta.

It's the second worst out of all of them behind meta. Meta's down 1%. Minus 1% Meta. I do like this one. I just added some to my own portfolio.

The same mega caps Congress owns. Microsoft, Amazon, Meta, Netflix, Oracle, and AMD each appear in 17 to 22 separate transactions.

Met is 23% below.

Like Meta at $610 per share roughly as I'm making this video, $1.56 trillion market cap. So Meta share price is about 15 times I ren. But Meta Company is actually 95 times bigger.

So, this is why people say meta stock is expensive just because the share price is expensive, which honestly doesn't make any sense.

Now, Meta is not in the tech sector, by the way. It is actually in the communication sector, but that doesn't change anything. The communication sector is also trending down hard on the number of stocks with uh fear showing up.

In fact, it's it's going down really hard. And then the number of buy signals has been falling off a cliff down here. That's not good at all. So that's this sector. It's not even the tech sector. It's a different sector.

We have so much to talk about, including Meta launching their highly anticipated AI agents. And kick things off with Meta Platform. Start of the week at 6:17. Still doing better over at Meta. Up nearly 5% finished week close to 6:47.

This comes as they came out with their new AI agent that they're calling Muse. and they are going to be rolling this out to users as we speak. My understanding is it does have some native capabilities inside of the Meta platforms.

And so if you're trying to do more with your Instagram account other than post pictures of your family, which is a perfectly acceptable thing to do, but if you're trying to attract clients or business or respond to messages, apparently this AI agent has some capabilities there.

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

And the first stock that we need to talk about and has a lot of updates coming out is Meta. So, let me show you what has been happening with Meta and why the stock is up roughly 19% from its lows just over the past month.

Now, you've probably heard what is going on with Meta and why the stock is rallying. But just in case you haven't, it's largely because Meta launched its Meta Muse Aentic app.

Meta now betting on making AI feel safe for the regular person. On Tuesday, Meta launched Muse, spelled mus, a personal AI agent that can shop for you, respond to your emails, book your flights, remind you about your tea times, everything you could possibly imagine on doing, all through a conversational app interface like iMessage.

It's Meta's biggest swing yet at turning roughly $130 billion in AI spending this year into something that the average consumer will actually use and help them get a little bit of return on that $130 billion investment.

We got some great news for Meta stock investors as the company announced a new AI product that sent the share price up by more than 6% on the day of the announcement.

I'll review what that new product was, how Wall Street is reacting, how I changed my estimates for the company's fair value, and my updated ranking for Meta as a buy, hold, or sell.

it's funny how stocks wake up all of a sudden, you know, boom, you know, meta, which we'll get into after a year range.

someone's like, "Oh my god, Meta out of nowhere. What could you have seen with Meta?" I'm like, "Well, you know, Meta did do a red dog reversal here." So remember this reversal day where you had an inside range, went below, came back above.

That was one signal that you had a low, a higher low, one more higher low, and then you remember they came out with news and it at first it would kept getting rejected into the 50-day and then it finally took it out and now lo and behold, you're back at 660 and I think it was upgraded today.

So Meta is probably up again today. It's up eight. So out of nowhere, you get this move from 567 to 100 points.

Happy Wednesday everybody who also called for Meta Green Day. So Meta also on the gap up list here today as that is trading higher.

let's look at that meta uh uh movement because I I saw that they had news uh they released uh a personal AI called Manis or Muse, I'm sorry. Muse is the other thing. Uh Muse.

yes um you know when you look at Meta, when you look at uh Nvidia, when you look at um Google or Alphabet, whatever you want to use for it, they generate an amazing amount of cash flow from their business, their core businesses.

But what's interesting is that those businesses are no longer capital-like businesses. um to the extent that they're now spending there's no free cash flow at Meta anymore.

Meta is looking to spend up to $145 billion on AI capital expenditures this year. For the first stock, I want to move to Meta Platforms. I think this is one of my favorite stocks this year.

The arrow was punished , and that was justified. I think the market always finds reasons for that, and there are many of them. I mean, many could argue that this company's increased capital expenditure is one of the reasons for its punishment, wouldn't they ?

We have seen capital expenditures reach approximately $130 billion to $145 billion for this year. The second thing is that, unfortunately, there are a lot of those legal issues that occur with Meta.

We've had a few updates in the past few weeks that suggest things may not be as bad as the market thinks. But the market is still a little scared here and there. I mean, in their most recent second-quarter earnings , legal costs caused the company to lose money or not achieve its expected earnings per share.

This is a story that will continue to be repeated over and over again. Therefore, there are those risks related to legal proceedings and capital expenditures.