I’ve been looking at every metric related to META and the only negative I can see was that VR was a disaster, and AI may not be their strongest weapon, but aside from that, their moat and overarching business model is absolutely incredible. They have billions of daily active users, across multiple integrated platforms and their ad revenue is unbelievable.
As a business owner myself, IG and FB ads deliver more ROI anything else we’ve tried over the last decade.
So can someone talk me out of dropping $50k on META when it’s at a such a discount? I’m failing to see how this isn’t a dip and with a potential split coming, it seems like a money printer?
How is META not a steal right now?
byu/phatelectribe instocks
Posted by phatelectribe
49 Comments
I bought every dip. Meta isn’t going anywhere. They’re a cash printing machine
I also added but let’s just say they are not a Wall Street darling, that is for sure. I think once it does
hit it’s going to be quite the ride.
Zuck keeps burning through cash same thing happened when he did metaverse now with ai, it’ll bounce hard sooner or later
Earnings play for me
It is. 10% of my portfolio is in Meta, bught as low as $130 and as high as $720 and holding. Target price of $900+.
Fake ads from china and russia
But you do you
Ask the people that sold it down to 75% in 2022. Tech stocks frequently get hit with 50% corrections. The 2022 narrative is about to replay again but this time its RL and AI departments burning a hole in META’s pockets. No ad-pocalpyse (yet) so no giga correction yet. Also Zuck is pre-empting by trimming down employees which is what gave them the 2022 reversal.
They’re just not super flashy, but you’re correct, they made a boat load of cash from advertising. The issue I’ve seen mentioned around here, mark may not be the best ceo for this transitional AI period. He already blew billions on Meta verse, which imo was a total failure. Now he’s pivoting and spending billions more in capex for data centers and other AI endeavors. So far they haven’t made a dime on any of these capex investments. Their only successful new product is the Rayban/meta glasses, and their new VR stuff. Wallstreet knows it’s a bargain, but so far hedge funds aren’t steeping back in yet.
I don’t believe they ever gave a timeline for ROI.
Not saying META is GOOGL, but this was the exact discourse on GOOGL right around this time last year. Everyone and their grandma was shitting on GOOGL. Now everyone is saying how they should’ve bought more. I bought META last year when it dipped hard. I also bought GOOGL when it was in the dumps. NFA.
I think their time may be coming to an end as people are getting sick of social media and wanting the new alternative to come out. The people don’t have anywhere decent to go right now but if anything good pops up I think Meta is done for.
How are the valuations (future EPS and FCF Yield)?
Just have patience. Seems like no body has that nowadays
They don’t have a fallback plan for the AI datacenters, plus they use accounting tricks to hide the true cost of AI spending…. I also don’t really see how they want to start earning from the AI.
Their ad sales platform is horrible. Facebook user base is aging and will soon start loosing purchasing power… The only excellent asset is instagram now…
If I was pressed to choose, it is Meta that won’t make the cut. Microsoft. Google and Amazon should be fine.
You and u/UnorthodoxShot should talk.
Literally a day ago they were asking the exact opposite question.
Honestly? Because it is a garbage company from a fundamental perspective.
Internal documents show that they know that most of their profit margin would be wiped out if false/fraudulent advertising was stopped.
Their CEO wasted $70 billion on an idea everyone knew was garbage from the outset (metaverse).
All of us with FB knows it is a garbage website and service.
On the other hand, they have a huge amount of personal data which they accumulate and sell. So there is that. But from a Buffet-value perspective, they are a bubble company. Albeit one that has managed to stay as such for a really long time.
Just buy the market it’s like what 3% of it?
The ceo wasted $75 billion with a B chasing after the metaverse which anyone with half a brain would have said is a stupid idea. Thats probably why people don’t wanna own it.
They have the glasses which will bring in “frontier data” to their AI models. OpenAI is trying with the project with Ives. Tesla maybe with all the captured data, but meta has more talent
I’m not going to talk you out of it but the downside of Meta, to me, is that everything EXCEPT for ads is blah. The dude renamed his company after a stupid failed idea. I feel like Facebook has peaked. It’s still good but, increasingly, it’s just for old people to bitch about politics or whatever. And Instagram might skew a bit younger but it’s not that much better. My kids, 12 and 15, don’t care at all about either one. Both are for old people. Eventually, the ONE golden goose, ads, will start to fall off. It’s probably a good short to mid-term bet but I really don’t see it as having a “forever” outlook unless Zuckerberg comes up with an actually good idea.
I dropped 49k on meta so I can’t talk you out of it. Earnings are in less than 2 weeks and I believe we will go towards 650 till then and if great 680+. Short term is just noise. Same thing happened with Google last year underperforming everything and now is the top performer. Forward pe is 21x and if they beat even less
Not all investable money can be used to pump every stock all the time. Money flows into other assets with better ROI.
At one point fartcoin had like 6 figure percent returns or something silly.
Point is, the market can actually be a casino. Should’ve seen the people losing their minds when $UNH was at 240s. You complain about $100 move down from top…those folks have over $200, left to go lol
I could never have anything to do with that snake
It is a steal, and sometimes a steal can remain a steal for awhile.
It is.
it’s the new Goog
Isn’t meta mostly ad company
Meta’s business model is to maximize user stress via algorithms that make us angry, so we stick around and they can show us more ads. It feels morally worse than investing in a Russian drone company. Eventually someone is gonna hold them to account.
AI capex overhang is real, would say them and MSFT are most exposed from a market perception standpoint.
Tariff uncertainty is tangential for META specifically, but I’m wary that even blowout earnings may have the upward move expected until the market sees AI returns. Especially after the waste from the Metaverse spend.
It dropped to $580 last November, should have bought back then.
Valuations have been so high for so long that FPE of 20ish is considered a discount? We’re cooked.
Long time $Meta investor
Rode down during Covid,
Held when it was down
Would have got more but was cash constrained at the time.
Should have sold out when Zuck went all in on goofy VR & awkward headsets! Ouch but held
They do have a great machine going with WhatsApp, Instagram, FB, etc however the dumping billions into AI – what the heck is that supposed to do for me & boomer friends? Ability to generate fake pictures? Is that worth billions? I’m at a loss here. Help me understand.
Meta will not be going anywhere considering it’s positions within social media. But you have to look at it from another angle.
Zuckerberg is trying to have another Facebook moment you know what I mean? He had lightning in a bottle with Facebook. The problem is and what everybody seems to forget is is that he stole this idea. So every time he tries something new to have that lightning in a bottle moment he just dumps his money into stupid shit without realizing how perfect both the timing was for Facebook, as well as the fact that he did steal it.
Meta won’t be going anywhere and it will be profitable, but let’s not pretend that Zuckerberg isn’t trying to become the next Steve Jobs.
Why not. Meta goes up and down. If you want in now is a good time.
They’re dumping buckets of money into AI. Which is a bubble.
I feel like social media platforms can be pretty cyclical. I’m not on Facebook but all I ever hear is that it’s absolute garbage now. I don’t know, that’s just what I hear. Instagram is going strong but what about when the hottest new app comes to market? If something catches they might be screwed.
I don’t trust those markets at all and honestly I’m not familiar with what other revenue they are pulling outside of their VR that is nothing more than a cool but niche product failure.
Correct me if I’m wrong.
It is a steal it’s just people downplay it because they get emotional over Mark Z.
I feel like everyone’s become so used to this bull market that one stock not doing well and it feels like all hell is freezing over lol.
I’m just DCA’ing every month but I’ll admit I have switched my attention to mainly nuclear, space and commodities.
Their AI model is trash and they fabricated results. The guy they hired to lead the super intelligence lab is too green. Huge spends, questionable results.
they’re a steal for shares guys. Options is very touch and go right now, unless you have no problem throwing money at deep itm 2+ years LEAPS, those will definitely print
I think the market just doesn’t trust Zuck’s spending for now. Definitely a steal.
It’s not clear what Meta plans to do in AI ? Internal arguments apparently over whether to train AI models to support and sales or social media – versus a vague long term plan to create AGI? Meta doesn’t have the enterprise relationships that Google Microsoft and Amazon have. Take my company – we have enterprise licenses with every major LLM provider apart from Meta. The consumer market for AI is limited and with Google getting Apple to license Gemini the biggest prize has gone.
How META is a stock to buy, I don’t understand,it is a meme xoin
Nothing wrong with meta but to me now isn’t the time to be putting 50K into this market. Foreign investors have about 30 trillion dollars in US stocks and bonds because historically the US government and economy has been seen as a stable safe place to park money. That’s changing. When the money starts coming out, it’s going to be like a snowball rolling down the hill with investors not wanting to lose the gains of the past few years. Always better to by at the bottom than the top. We’re currently at a top.
Up 7.1× from 88.09 in just 3 years and 2 months,
and you still call it a STEAL?
Wait till you meet a ROBBERY.
Another take: It’s NOT
it is falling behind in AI, it is a mess actually
Bc no one likes clepto zuck.
Because its META