Latest / Earn Your Leisure / Investing Daily: Is Meta the Top AI Buy Right Now?

Transcript

Investing Daily: Is Meta the Top AI Buy Right Now? · Earn Your Leisure

• 0:01
  Speaker 1: This episode is brought to you by P and C Bank.
• 0:03
  Speaker 1: A lot of people think podcasts about work are boring,
• 0:06
  Speaker 1: and sure they definitely can be, but understanding of professionals
• 0:10
  Speaker 1: routine shows us how they achieve their success little by little,
• 0:14
  Speaker 1: day after day. It's like banking with P and C Bank.
• 0:18
  Speaker 1: It might seem boring to safe plan and make calculated
• 0:21
  Speaker 1: decisions with your bank, but keeping your money boring is
• 0:24
  Speaker 1: what helps you live a more happily fulfilled life. P
• 0:27
  Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
• 0:32
  Speaker 1: Boring since eighteen sixty five is a service mark of
• 0:35
  Speaker 1: the PNC Financial Service Group, Inc. P and C Bank
• 0:39
  Speaker 1: National Association Member FDIC.
• 0:43
  Speaker 2: I think Meta definitely in this class is incredibly strong.
• 0:47
  Speaker 2: Hell of a turn around from twenty twenty two. I
• 0:51
  Speaker 2: think it's unfair, but I think it's just like general
• 0:54
  Speaker 2: market conditions that's dragging them a help a lot lower.
• 0:57
  Speaker 3: With you one hundred percent.
• 1:00
  Speaker 1: Metal as a buy in fact, I when I saw
• 1:04
  Speaker 1: it drop fifteen percent, I bought it.
• 1:06
  Speaker 3: Now it's down.
• 1:07
  Speaker 1: Twenty three, I might have to add some share to
• 1:09
  Speaker 1: the portfolio again. I like the aggressiveness of Zucker Berg
• 1:14
  Speaker 1: their cap back spend. You know, they said they're increasing it.
• 1:18
  Speaker 1: They're all in on this. They understand the severity of
• 1:20
  Speaker 1: winning this this this AI race. They have the innovation,
• 1:24
  Speaker 1: they have the data. When you're talking about all the
• 1:26
  Speaker 1: platforms that they have at their disposal, they have products.
• 1:29
  Speaker 3: Now that the glasses are doing pretty.
• 1:31
  Speaker 4: Well, they are doing incredibly well, and they're expanding their
• 1:34
  Speaker 4: data center expansion in their vision for AI, all pun
• 1:39
  Speaker 4: intended is very clear, and it's going to cost, and
• 1:43
  Speaker 4: their understanding of that, and the fact I think, you know.
• 1:46
  Speaker 1: People took took his cadence during the earnings call a
• 1:51
  Speaker 1: little to heart and say that he was a little
• 1:53
  Speaker 1: two lackluster and a little frivolous about how you're speaking
• 1:56
  Speaker 1: about the cap backs.
• 1:57
  Speaker 3: But it's dual and fascinat that's the part that's it.
• 2:02
  Speaker 2: If he did okay, and I was super critical of
• 2:04
  Speaker 2: the metaverse investment that in that story, but he's investing
• 2:08
  Speaker 2: into the right things at the right price at the
• 2:12
  Speaker 2: right time. To not be left behind when Apple didn't
• 2:15
  Speaker 2: and they get punished makes no sense. You can argue
• 2:20
  Speaker 2: I won't do it this week. But this year Zuckerberg
• 2:24
  Speaker 2: has been better than Cook, there's no question.
• 2:28
  Speaker 1: Oh the resurgence has been incredible, right, like we're talking
• 2:33
  Speaker 1: about I mean, it was down in the four nineties.
• 2:35
  Speaker 1: I know it pulled back obviously during the deep Seak thing,
• 2:39
  Speaker 1: but it's rebounded. Was at seven over like seven to
• 2:41
  Speaker 1: fifty at one and obviously it is pulled back here.
• 2:45
  Speaker 3: And you know, it's probably one of those gold rules
• 2:47
  Speaker 3: in investment for me.
• 2:47
  Speaker 1: If if an asset that I truly truly believe in
• 2:52
  Speaker 1: is at a discount, if it's between twenty to thirty percent,
• 2:54
  Speaker 1: and then I also see the options down thirty.
• 2:59
  Speaker 3: It hits the check check, check check.
• 3:02
  Speaker 1: All I got to do now is executing and Matter
• 3:04
  Speaker 1: has done that and it's done it again, might have
• 3:06
  Speaker 1: to reposition it, but yeah.
• 3:07
  Speaker 3: Strong margin.
• 3:10
  Speaker 2: That margin is thirty two.
• 3:12
  Speaker 1: Yeah, which is which is the opposite for a company
• 3:15
  Speaker 1: like again, all these companies not created evil Core. We've
• 3:19
  Speaker 1: we've been speaking about it, and I know it's one
• 3:21
  Speaker 1: of the companies you just said, but we've been saying
• 3:24
  Speaker 1: six months. Six months has been our golden rules. Six
• 3:26
  Speaker 1: months came in September. It's been trending downwards since they reported,
• 3:31
  Speaker 1: and I like Core, We've I've always said, I liked it.
• 3:34
  Speaker 1: The only thing that troubled me was the debt, right Like,
• 3:39
  Speaker 1: that matter their data center expansion, it's not they had
• 3:44
  Speaker 1: to take on debt to expand.
• 3:46
  Speaker 3: Now they do have in Video as a partner.
• 3:49
  Speaker 1: But when you think of how they're using in video,
• 3:52
  Speaker 1: right like, in Video is supplying GPUs to them, but
• 3:55
  Speaker 1: they're not the top of the line GPUs, right like,
• 3:58
  Speaker 1: it's not black Well, it's not Blackwell, Ultra is not Rubin.
• 4:01
  Speaker 1: They were using the age twenties, and so the Hoppers
• 4:06
  Speaker 1: for those who are in the know. But when you
• 4:08
  Speaker 1: think about that, right like, people are going to lease
• 4:12
  Speaker 1: that compute, but they're leasing it at a lower tier model, right,
• 4:17
  Speaker 1: So that almost becomes a depreciating asset every time the
• 4:19
  Speaker 1: company puts out a newer version. So by the time
• 4:22
  Speaker 1: you're using the Hopper and they've already had Blackwell, by
• 4:25
  Speaker 1: the time you got Blackwell and you're least they've already
• 4:28
  Speaker 1: they've all and then it's Ruben and it's Rubuilt, and
• 4:30
  Speaker 1: so that becomes a depreciating asset. That business model is interesting,
• 4:35
  Speaker 1: but the debt that they're taking on to expand is
• 4:38
  Speaker 1: concerning because they have to generate a certain amount of
• 4:41
  Speaker 1: revenue just to offset it, and it doesn't look like
• 4:43
  Speaker 1: they're doing that right now, which is why you sort
• 4:45
  Speaker 1: of stop full so greatly from I think one things
• 4:48
  Speaker 1: training at like seventy.
• 4:49
  Speaker 3: Dollars now and so that that's my my slight issue
• 4:52
  Speaker 3: with cord we.
• 4:53
  Speaker 1: I think it'll be here obviously, as Nvidia is has
• 4:56
  Speaker 1: a vested stake in them, But that's my major concern
• 4:59
  Speaker 1: record with Even.
• 5:00
  Speaker 2: With that, koeve having a partnership with in video Kobe
• 5:05
  Speaker 2: is a mistress with a lot of debt. Just because
• 5:09
  Speaker 2: you get to hang out once a week, it does
• 5:11
  Speaker 2: not mean that your primary investment is over with all
• 5:15
  Speaker 2: y'all who kept acting like y'all in the video. It's
• 5:17
  Speaker 2: over with all the holders.
• 5:19
  Speaker 3: Some debt is good.
• 5:20
  Speaker 2: Just a prime example.
• 5:21
  Speaker 3: While it's not no what you're saying they're over with Koe.
• 5:26
  Speaker 2: Not saying that they're not a class.
• 5:29
  Speaker 3: No. I started it by saying.
• 5:31
  Speaker 2: You know, but it's a lot of people who were
• 5:33
  Speaker 2: like what they're going to Yeah, you know what?
• 5:36
  Speaker 3: Because people people traded it and they did make money.
• 5:38
  Speaker 1: So I'm not mad at those people who like, hey,
• 5:41
  Speaker 1: I was part of the I p O when it
• 5:43
  Speaker 1: was at forty and then around great.
• 5:44
  Speaker 2: I'm all for if you were in a private market,
• 5:47
  Speaker 2: but even the people at the private ship they got
• 5:49
  Speaker 2: rid of it that it's a shot, that's the stock game.
• 5:52
  Speaker 3: They're the selloff.
• 5:53
  Speaker 1: That's why I said we got away six months, because
• 5:55
  Speaker 1: after that six month hold up, we're going to see
• 5:57
  Speaker 1: people say, all right, we're taking profit. We've made money,
• 5:59
  Speaker 1: we've had pre ipo, this is a nice run up.
• 6:02
  Speaker 1: Let's let's take some profit off the table for events
• 6:05
  Speaker 1: like this. Whereas now trading at seventy. So we'll see
• 6:08
  Speaker 1: where it heads over the next couple of weeks. We'll
• 6:09
  Speaker 1: see Wednesday again will be a teller, right.
• 6:11
  Speaker 2: Like if they'll bounced back eventually get back into the
• 6:13
  Speaker 2: ninetiese hundred range. But they that run up from forty
• 6:18
  Speaker 2: to like one seventy.
• 6:20
  Speaker 3: Yeah, it was crazy overvalue. Chat put in chat, hit
• 6:26
  Speaker 3: the like button. Shit, what about pound two? I think
• 6:31
  Speaker 3: poundt's issue is evaluation. IFU like seventeen high, bro, but
• 6:36
  Speaker 3: what's the number? Seventeen seventeen hundred.
• 6:38
  Speaker 2: Is too hot? Like great company, I don't like what
• 6:43
  Speaker 2: they do. I'm starting to like Alex a hell of
• 6:46
  Speaker 2: a lot of the CEO I won't lie. I don't
• 6:49
  Speaker 2: like the mission because of how it affects black and
• 6:51
  Speaker 2: brown people. But when it ran from five to eighty
• 6:55
  Speaker 2: four to two of seventh, great returns. If you made
• 6:57
  Speaker 2: money on it, I'm incredibly happy. But I don't know technically, Okay,
• 7:05
  Speaker 2: if Palaenteer is publicly traded, Anderil getting as much coverage
• 7:10
  Speaker 2: and lore around it, it's scary. If I'm a Palenteer owner,
• 7:15
  Speaker 2: for sure. Now is there an ecosystem of both of
• 7:17
  Speaker 2: them can thrive? And I think, of course Alex is
• 7:20
  Speaker 2: a elon ask CEO where he's driving a lot of
• 7:25
  Speaker 2: the value through his vision, work, ethic, selection, and curation
• 7:31
  Speaker 2: of executive management team.
• 7:33
  Speaker 3: For sure.
• 7:34
  Speaker 2: But the valuation on this company is too hot. And
• 7:38
  Speaker 2: I even think if you look at Peter Tiel and
• 7:41
  Speaker 2: Alex would if you've got them in a private conversation,
• 7:44
  Speaker 2: they will tell you the same thing. Like the true range,
• 7:47
  Speaker 2: they should be in the one twenty one thirty range.
• 7:52
  Speaker 2: If they were there, there would be more room to go.
• 7:56
  Speaker 3: But they hit their high for the year, for sure.
• 8:00
  Speaker 3: The forward PE is one hundred and eighty five. That's
• 8:03
  Speaker 3: fucking insane.
• 8:05
  Speaker 1: So I mean the revenue, the revenue isn't matching that
• 8:11
  Speaker 1: just yet, will it at some point? Right when we're
• 8:14
  Speaker 1: talking about the amount of government contracts that they will secure,
• 8:18
  Speaker 1: and I'm not just talking domestically, I'm talking like global
• 8:23
  Speaker 1: government contract and that I'm sure that they'll play a
• 8:26
  Speaker 1: role in Yeah, that number that that that that revenue
• 8:30
  Speaker 1: has to come in at some at some point that
• 8:32
  Speaker 1: could even match this. I think they're they're a victim
• 8:35
  Speaker 1: of Hey, this thing is run too high. People are
• 8:38
  Speaker 1: talking about an AI bubble. This is AI tech and
• 8:40
  Speaker 1: the in the sense of having defense tech.
• 8:44
  Speaker 3: Who is the poster child for high evaluation?
• 8:46
  Speaker 1: I think they're the poster child and that this is
• 8:49
  Speaker 1: this is the repercussions of it.
• 8:51
  Speaker 3: Just pull back here.
• 8:55
  Speaker 2: After the Nvidia trade took off so well, everyone was
• 8:59
  Speaker 2: looking for or the next thing to park money into
• 9:03
  Speaker 2: great company once to get don like the Mission earners.
• 9:05
  Speaker 3: What's up?
• 9:06
  Speaker 1: You ever walk into a small business and everything just
• 9:08
  Speaker 1: works like the checkout is fast, their seats are digital,
• 9:12
  Speaker 1: tipping is a breeze, and you're out the door before
• 9:15
  Speaker 1: the line even builds. Odds are they're using Square? We
• 9:19
  Speaker 1: love supporting businesses that run on Square because it just
• 9:22
  Speaker 1: feels seamless.
• 9:23
  Speaker 3: Whether it's a local coffee.
• 9:24
  Speaker 1: Shop, a vendor at a pop up market, or even
• 9:27
  Speaker 1: one of our merch partners, Square makes it easy for
• 9:30
  Speaker 1: them to take payments, manage inventory, and run their business
• 9:34
  Speaker 1: with confidence, all from one simple system. One of the
• 9:37
  Speaker 1: things we love most is seeing neighborhood businesses level up
• 9:41
  Speaker 1: business West Indian Spire writing our community that started with
• 9:44
  Speaker 1: a small takeout counter. Now with Square they've been able
• 9:47
  Speaker 1: to expand into a full sit down restaurant and even
• 9:50
  Speaker 1: started catering events across the city. That's the kind of
• 9:54
  Speaker 1: growth that inspires us, and it's powered by Square. Square
• 9:58
  Speaker 1: is built for all types of businesses, from the corner
• 10:00
  Speaker 1: bagel shop that turned into a local chain, to the
• 10:03
  Speaker 1: specialty market with thousands of unique items, to the stylist
• 10:07
  Speaker 1: who's been holding you down for years. If you're a
• 10:09
  Speaker 1: business owner or even just thinking about launching something soon,
• 10:13
  Speaker 1: Square is hands down one of the best tools out
• 10:16
  Speaker 1: there to help you start, run and grow. It's not
• 10:19
  Speaker 1: just about payments, it's about giving you time back so
• 10:22
  Speaker 1: you can focus on what matters most ready. To see
• 10:25
  Speaker 1: how Square can transform your business, visit Square dot com,
• 10:29
  Speaker 1: Backslash Go, Backslash eyl to learn more that Square dot
• 10:34
  Speaker 1: com backslash, go backslash EYL. Don't wait, don't hesitate. Let's
• 10:39
  Speaker 1: Square handle the back end so you can keep pushing
• 10:41
  Speaker 1: your vision forward