Added to YB: 2026-05-06
Pitch date: 2026-05-04
META [bullish]
Meta Platforms, Inc.
Author Info
No bio for this author
Company Info
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses in the United States, Canada, Europe, Asia-Pacific, and internationally.
Market Cap
$1.5T
Pitch Price
N/A
Price Target
N/A
Dividend
0.34%
EV/EBITDA
13.67
P/E
22.15
EV/Sales
7.21
Sector
Interactive Media and Services
Category
value
META: The Market Sold the Wrong Thing
META (added to position): Q1 rev $56.31B (+33% YoY, fastest since 2021), ad impressions +19%, avg price/ad +12%, 41% op margin held flat despite 35% cost increase. OCF $32.23B. Raised 2026 capex to $125-145B ($10B over prior guide), 87% YoY jump drove -10% selloff. Mgmt committed to 2026 op income >$59B despite doubled capex. Muse Spark launched, Meta AI sessions grew double-digits post-release, business agent convos +10x to 10M weekly. WhatsApp/other rev $885M (+74% YoY). Trades 16-18x 2027 EPS, pricing zero AI monetization value. Custom silicon rollout >1GW this year to cut costs long-term. Risks: DAP miss (Iran/Russia disruptions), youth safety litigation, EU headwinds, AI ROI timeline uncertain. Free cash flow ~breakeven 2026 vs $43.6B in 2025. Added during dip.
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