Jo Bhakdi onMETAMeta Platforms

Joe holds a small Meta position and believes it is the most undervalued of the Magnificent Seven, crediting Alex Wang's leadership of Meta's AI efforts for a turnaround he says is now visibly playing out.

The speaker is moderately bullish on Meta, primarily on valuation grounds and confidence in Meta's AI team, though his conviction is weaker than for Tesla or Nvidia.

Jo has a small Meta position and views its earnings/capex guidance as a key trigger for whether the broader AI-driven market selloff continues or reverses. He noted Meta's forward capex guidance (130-145B vs prior 125-145B) came in as a mild, digestible increase, which he viewed as a positive sign for market stabilization.

Meta is mentioned as one of the major hyperscalers spending heavily on data center buildouts, contributing to the $670 billion in infrastructure spending that will face rising energy costs. The company represents the terrestrial data center model that space-based alternatives will disrupt.

Meta's AI infrastructure investments are part of the rational hyperscaler spending that will generate substantial returns. The company is well-positioned to benefit from the AI agent revolution.

Meta's earnings are going crazy with cash flows through the roof due to the AI revolution. The company is part of the Mag 7 stocks with exploding fundamentals.

Meta is identified as one of the major AI companies that will be the biggest winners from AI disruption and job displacement. The company will benefit from the transition to an AI-driven economy with explosive productivity growth.

Jo views Meta as undervalued among the Mag 7 stocks after Yann LeCun's departure, believing the company will now catch up in the AGI race without obstacles. He took profits after a 10% gain but keeps it on his agenda for future investment.

Meta is down as part of the broader tech stock selloff, caught up in the irrational market behavior and AI-related fears.

Meta is significantly undervalued and positioned to become a major AI winner following leadership changes. The speaker bought at $610 in October and sees continued upside potential.

Meta is included in the speaker's AGI-focused portfolio alongside Tesla and Nvidia. The speaker views it as part of capturing the upside of the AGI revolution.

Meta is mispriced right now and ahead of the game in AI, making it an attractive AGI-era name versus peers.

Meta is the underdog of the Mag-7 but owns 3 billion users which Jo considers the entire productive population of Earth it can monetize. Does not build its own chips but buys heavily from Nvidia and Broadcom.

Meta has dropped 20% in one month to a 25x PE, which Jo views as a contrarian opportunity given 3 billion users, massive compute capex, Alexander Wang now running the Superintelligence team, and Yann LeCun gone. Jo expects strong AI results within 12 months and PE to re-rate from 25 to at least 33 while earnings also grow, with Meta potentially catching up to the rest of the Mag-7.

Meta is Bhakdi's favorite underrated hyperscaler pick because the market misunderstands Meta's AI capex and has not recognized that Yann LeCun leaving frees their amazing AI team. Low P/E plus Zuckerberg's aggressive entrepreneurship should drive cool AI innovation in the next 12 months while the stock is underappreciated.

Meta is probably the best idea outside Tesla at 21x forward P/E with a secret AI strategy that will transform everything. Video coming out this week on Meta.

Meta just made an enormous announcement yesterday that will strategically change Meta's stance and capabilities (something called 'AI high'). Bhakdi is creeping Meta up to top-3 position - very risk-mitigated, not much downside, super low valuation. Dedicated video on Meta coming.