Key insights
- An analyst identifies Meta (META) as a top value play, citing strong revenue growth (33% YoY), a forward PE of 18, and a PEG ratio under 1. Despite capex concerns, the analyst believes Meta's potential to monetize excess compute capacity mitigates risk, drawing parallels to Alphabet's (GOOG) past undervaluation. This suggests a bullish outlook for META, potentially impacting the broader tech sector and large-cap growth stocks.
Im loading up META at the moment, got around $410k (out of my $2.1m portfolio) in shares, and a few thousand $ in calls for good luck.
Year over year revenue growth is 33%, far higher than the rest of Mag7. The forward PE ratio is at 18, and PEG is under 1 (!!). A lot of the selloff is happening due to capex fears, but in my opinion this is nearly risk free investment since if they over invest they can just resell the extra compute and spawn a neo cloud business. Zuck himself said he’s open to it.
I’ve been holding a sizable GOOG stake for the last 4 years, and this opportunity seems very similar to where GOOG was a year ago. I think we can go up ~80% from here.