META is a Cash Flow Machine
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- čas přidán 25. 07. 2024
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META dropped 15% after their most recent earnings call, even though the business seems to be going strong. So strong, that I added it to my portfolio earlier in the month. In this video we break down META’s business, what they did over the last 18 months to turn around their stock for an over 400%+ return, and why I decided to buy META now in 2024
00:00 Understanding META’s business
04:08 What are some risks to their business?
08:43 How META turned around their stock in 2022
11:57 Why I decided to buy META in 2024
13:59 Overall thoughts
*I am not a licensed professional or a financial advisor. This content should not be taken as financial advice. It is meant for educational and entertainment purposes only. All opinions and perspectives are based on my own personal financial situation, experiences, and goals. Please ensure that you do your own due diligence before making financial decisions and/or meet with a professional. Links above include affiliate links, which means I may receive a commission at no additional cost to you.
This channel is simply great. Maybe you're not trying to hit a home run with every stock, but you're doing it with every video. Thank you and please don't stop.
Thank you! Much appreciated!
You're correct brother. META makes sense. Over a period of 10 years, you should be very happy.
For sure, outside of any dramatic changes to privacy / ad targeting I think they're going to be just fine for a while
Amazing presentation & nice that you purchased during a price decline!
Yes, was nice to get it in a little dip
Appreciate the vid vud.
No worries!
Hey Matt, had my eye on Meta after they initiated the dividend, but never really knew much or understood the company. I love companies with growing cashflows so this video helped me a ton. I don't personally use social media so an explanation is very welcome. Keep up the great work!!
Which App do you use instead of WhatsApp? 😊
Good move!
Not dividend related, but can you talk about SPTM?
And SPDG (this one is dividend etf, but i have seen no discussion about it st all).
I fully agree with your analysis and outlook on $META but was pondering whether to start a position at the current level after I missed the boat when it went down sub-$440. I'm still waiting for a pull-back but glad you're now in!
my buy was at $449, I hadn't finished my analysis yet so I missed the biggest part of the dip
@@mattderron I think it might pull back to those levels but all in all, thinking this is a good long term hold for the next 5-6 years atleast!
Very good explanation, thank you very much
Thanks!
Cheers Matt. I’m not brave enough just yet to buy individual stocks but appreciate the content anyway.
That’s all good, funds and indexes work great
Meta is def a cash flow machine! There is no other social media companies with more users than Meta. Plus they have way more cash than long term debt which is a metric I love!
Yup! Zero net debt is great
Would like to know your take on Coupang and ASMR
For me, it has been a great stock. Meta has a total of 24 data (computer) centers: 20 in the U.S. , 3 in Europe, 1 in Asia. That is massive. The companies that hold the data have an advantage over the rest that do not.
Amazing analysis, thanks for sharing your thoughts on Meta
Thank you!
Thank you for this video. Great analysis. In my case, META brings some painful memories because, foolishly, I sold it at the worst time possible in 2022. But I am buying it back slowly, a little at a time.
It’s ok, we all have stories like that. Nobody knows exactly what will happen. Just keep going
@@mattderron Oh, that's not the worst of my mistakes. I made a bunch of mistakes listening to Motley Fool advisors and I still haven't been sell some of my worst mistakes. They were all helpful lessons, since those mistakes made me read up, listen to many CZcams videos and learn to evaluate stocks a little better. Thank you for your encouraging words and for your helpful videos.
Great video! One risk you may not have seen:
Social Media has been very dynamic, a new App can take the world by storm. Meta, being under the scrutiny of regulators, in my view at least will not be able to acquire any new kid on the block.
Very good analysis ❤. THX! Fully agree. And yes, I have META in my portfolio... I looked at FBs biz since their start in 2004 and then waited 10 yrs until I bought a bulk of shares in 2014 (IPO in 2012). Now, again 10 yrs later, I still own META, even more shares. Also had no doubts during 2022s massive drop, didn't sell a single share 😊. Meanwhile META is one of my best performers - but I had to keep it 10 yrs.
This is awesome, I love it! 10 years is amazing
My 2 main reasons to buy a stock are 'data-driven biz model' and 'pricing power' (to build a moat). The rest is then more or less a self-fulfilling prophecy over time... in case of FB/META I had to wait 10 yrs until I could tick off both 😬. Pricing power... NVDA definitely has, AAPL still has, and TSLA had until last yr 😊
META is a good company for sure. Love watching your videos . However, I do think some of the criticism about constantly swapping positions (seemingly on a monthly basis) is fair. Definitely not going to tell you how to run your portfolio, but I do know that many of the highest quality of super investors and hedge funds rarely buy or sell positions even on a yearly basis. In my opinion you already have a solid group of companies and shouldn’t change them out if you hold a strong conviction in them. Sending nothing but the best though.
Thanks, I don’t think you’re going to see nearly as much selling going forward as you’ve seen lately
Everyone has their own journey when it comes to investing. That's why we love it. Don't criticize someone's journey. He is just sharing his journey with us. I appreciate that.
WHat about MSFT?
Great company, thought the META dip was more attractive but MSFT is great too
When did you sell SBUX? I sold it too the day after the earnings came out. Took the loss to offset my gains at the end of the year with taxes.
I sold on 5/3, day after my SBUX earnings video. Even if it comes back, I just felt there were better places to put my money (like META)
I would've bought more on this recent dip if it hadn't already grown to 22% of my portfolio.
I’d rather go with Amazon if I had to pick one. Ideally I’d have both though.
if I had to pick between the two, I would pick Amazon as well but I do hold both
AMZN? Really? 1.5M employees worldwide? Just the aws cloud biz is very profitable. And AMZN/aws has to invest heavily in the 'AI cloud infrastructure' as well.
It didn't just drop 15%, it was down 20% AH at one point. I tripled my position at $400 and it has to be one of the best timing plays I've ever made in my life. Still patting myself on the back for that one
For sure, I was talking days to day close but it definitely went lower that day after earnings. Nice catch though and awesome to be able to go heavier in it on the drop!
lol u can still index invest and still nibble in individual stocks
lol I know, that's what I do
@@mattderron yes but didn’t that guy say why invest in meta and apple if u can just buy the s&0?
They did, people just like to tell me to index only for whatever reason
user is not necessarily a peeson, many of FB, Whatsapp users are groups and businesses, that's why talking about the global population is not so interesting, growing number of groups and businesses can go on and on
META changed how they report their numbers it’s no longer “users” but “people” across all of their family of apps. They don’t explicitly say how they handle business accounts but I’m assuming they are still attaching it to a person.
Either way there will be some statistical overlap or error regardless but I thought it was an interesting way to show their scale based on their new reporting metric
Meta & NVDA are married .
Along with MSFT, AMZN, and GOOGL (with NVDA)
I bought Meta last year at an average of 131, I bought more after the past earnings at 426. Zuckerberg, I love founder lead companies.
Very nice!
@@mattderron Don't listen to the haters, it's about your journey and I appreciate you sharing it. The journey is why we love investing.
@@kevinpob for sure, it doesn’t bother me. I think people get too caught up with investing platitudes and just use them blindly “good investors keep holding”, “time in the market > timing the market.” all of these things need context.
Everything I sold was because I didn’t have the conviction in it for various reasons, right or wrong. It wasn’t changing just to change. It was about correcting mistakes I made last year.
I sleep better than ever with my portfolio. Seeing how our decisions turn out is part of the fun. 🙂