Trade Alert

Position Update - Meta

_{Posted by Club Member Mark Ace21 27.7.23}

The trade is now up about 18%. (See prior posts for the trade history)

Meta posted quarterly results that beat Wall St estimates on the top and bottom lines, as well as provided better than expected guidance for the next quarter.

Overall, the markets liked what they are seeing from the management team, Meta popped 8%.

Meta’s revenues increased 11% yoy, first double-digit growth rate since end of 2021.

US GDP grew at 2.4% in the second quarter despite all the recession calls by economists! Perhaps we’ll also see corporate ad spending reaccelerate.

Meta is up 150% year-to-date, so I’m cognizant that maybe the stock has gone “too far, too fast”. However, from a valuation stand point, Meta is still the cheapest among all the mega caps.

Between the digital ad market potentially rebounding which would further boost revenues for Meta, and the company’s continued discipline approach towards Capex and operating costs, I do think that Meta tells a very compelling ‘free-cash-flow machine” story that the markets will continue to reward.

Sometimes you gotta let your winners ride! I’m staying with this trade.

#Meta #Trade Update

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