GOOGL - Buy Meta After Q1 Earnings Drop Collaborative Leadership Results In Higher Margins

2024-04-24 17:30:49 ET

Summary

• Meta Platforms, Inc.'s origin story sets it apart from other Silicon Valley companies, with its advertising engine being developed on Wall Street and by venture firms.
• Despite concerns about its valuation, Meta's strong stock performance and potential in AI make it a fundamentally strong company.
• Meta's collaborative approach and concentration in digital advertising position it well in the AI market, with potential for growth and innovation.
• Meta initially sold off after its Q1 earnings showed higher than expected CAPEX, but the company's fundamentals and AI competitiveness remain compelling.

"A blind deference to multiples without understanding their limitations can severely hamper the effectiveness of an investment process." - Michael J. Mauboussin .

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