META

Meta Platforms Inc - Ordinary Shares - Class A

TMT


Presented:06/23/2022
Price:$158.75
Cap:$429.66B
Current Price:$586.27
Cap:$1,483.16B

Presented

Date06/23/2022
Price$158.75
Market Cap$429.66B
Ent Value$580.19B
P/E Ratio12x
Book Value$45.41
Div Yield0%
Shares O/S2,706.52M
Ave Daily Vol32,200,703
Short Int1.22%

Current

Price$586.27
Market Cap$1,483.16B
Meta Platforms, Inc., engages in the development of social media applications. It builds technology that helps people connect, find communities, and grow businesses. It operates through the Family of Apps (FoA) and Reality Labs (RL) segments. The FoA segment consists of Facebook, Instagram, Messenger, WhatsApp, and other services. The RL segment includes augmented and virtual reality related consumer hardware, software, and content. The company was founded by Mark Elliot Zuckerberg, Dustin Moskovitz, Chris R. Hughes, Andrew McCollum, and Eduardo P. Saverin on February 4, 2004, and is headquartered in Menlo Park, CA.

Publicly traded companies mentioned herein: Meta Platforms Inc (META)

Highlights

The presenter is short shares of Meta Platforms Inc (META), a situation wherein he senses investor excitement for the opportunity to buy at current levels ($157 per share), but he believes they are buying it off the wrong multiple assumption. He is confident that earnings expectations need to come down, not only on the top line but also with respect to its 2023 opex and capex guidance that will be given in Q3; when that likely comes in well ahead of the Street’s expectations, it could act as a catalyst that drives an earnings estimate revision. There are also cyclical and structural issues that are not fully priced into the stock. Even though it is difficult to map out the true downside from here, he models a cheap put option on multiple litigation issues, TikTok’s growth, and the digital advertising landscape. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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