Key insights
- Wedbush's Dan Ives reiterates a bullish stance on Meta, calling the stock "dirt cheap" despite a recent rally driven by the Muse Spark AI model. He believes Meta's AI initiatives will lead to significant monetization of its user base, presenting a buying opportunity due to market misunderstanding of the company's potential. This positive sentiment could provide a short-term boost to Meta's stock and potentially other large-cap tech stocks.
Meta (META) released artificial intelligence (AI) model Muse Spark on Wednesday, triggering a stock rally this week.
Wedbush Securities managing director and global head of technology research Dan Ives chats with Yahoo Finance Executive Editor Brian Sozzi about why he still sees Meta as a value stock.
Uh Dan, before I came on here, uh I dropped a story on Meta that uh Muse Spark rally has continued. stock's up about 10% over the past five sessions. Yet, you look at the valuation on Meta, still I believe under 20 times forward earnings. Uh is Meta still cheap to you?
It's dirt cheap. I mean, I'd say that it's look at Microsoft, look at Amazon. And when you look at meta, look, llama obviously has has been really been a black eye. But when you look at Muse and what this is going to do to the install base, it's going to be a huge monetization of billions of users. Is it's not they're trying to unsee what an Anthropic or what a, you know, an open AI is doing. And I think it just speaks to our view, Saaz. I get the environment, but it there's so much I'd say misinformation to misunderstanding and that creates the opportunities as you know, you and Ben, you know, do a great job explaining. It's just it's this type of narrative that I think creates the opportunities in tech.