Bullish Trade Call on Meta Amid Misunderstood Tax Adjustment

3 months ago

"Meta just dropped 11% on optics. But under the hood, revenue is up 26%, free cash flow over 10.6 billion. AI performance improving, and the balance sheet stacked with 44.4 billion in dry powder. This wasn't a bad quarter. It was one of the best quarters in company history, disguised by a single tax adjustment. And that's why this is a buying window, not because it's cheap, because it's mispriced. The business is getting stronger every quarter. The numbers are trending up across revenue, product usage, and free cash flow. The product is becoming harder to compete with, not easier. That's what I look for, and that's what I bet on."

The speaker offers a trade call on Meta, arguing that despite an 11% drop fueled by a one-time tax adjustment, the underlying business fundamentals are robust. With strong revenue metrics, free cash flow, and AI-driven ad performance, the market overreacted to an accounting quirk. The speaker positions this as a buying opportunity given the mispricing.

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