Investment Thesis
Meta (META) is my only mega-cap stock. The next biggest stocks I own are PDD (PDD) and Arista (ANET), with a market cap of $200 billion and $100 billion, respectively.
As an inflection investor, I have space to go anywhere. If I chose to invest in Meta it's because I believe in Meta's prospects being as good as GigaCloud Technology (GCT) or LifeMD (LFMD) or Sezzle (SEZL).
Without being a hero, I believe that Meta is capable of growing next year in the midteens while it's being priced at approximately 22x next year's free cash flow.
In short, I reaffirm my price target of $630 by the summer of 2025.
Important Context
On 25 April, I said:
Heading into its Q1 2024 earnings report, Meta's share price has remained solid while the rest of the market took a breather. Investors naturally assessed this earnings report with a finger over the sell button. But as you'll see, Meta's thesis is very much intact. Nothing has changed.
Further, I can assure you, that without any bravado, this stock will continue to head higher in the coming weeks. Stick with the plan. Don't give into fear.
Feel free to double-check me if you wish. Word-for-word.
Here's the share price. Meta was crushed on the back of its Q4 results. The stock plummeted. A couple of subscribers reached out to me asking me if this changed my thesis. I explained that nothing had changed for me. Less than 30 days later, the stock is back to where it was. Did you miss the crash?
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