Meet Kevin onMETAMeta Platforms

Kevin highlights Meta's call options (warrants) on AMD as a source of significant 'other income' boosting earnings, and considers Meta undervalued on a PEG basis despite a recent rally.

The host briefly notes that Meta has continued rising since he first flagged it around $566 a share, citing it as a successful call he's made in multiple videos. No new specific price target or timeframe was given in this segment.

Kevin argues Meta is a major beneficiary of both the agentic AI advertising boom and its own AI productivity gains from the Muse launch, and views the stock as still cheap after its recent surge. He set an explicit long-term price target of $1,800 for the stock.

Kevin highlights Meta's 12.5% single-day rally driven by its new Muse AI agent topping App Store charts, notes he holds a six-figure position and has been aggressively buying the dip, and argues Meta is still 'dirt cheap' with substantial room to run toward much higher price levels.

Kevin says he has been aggressively buying Meta, has six figures invested, and reiterates he remains bullish after the stock surged 12.5% in a single day. He does not give a specific price target, but frames the move as validation of his ongoing bullish stance.

Kevin believes Meta remains deeply undervalued even after its rally, citing his own higher-than-consensus EPS growth estimates driven by the Muse AI agent product and superior advertising positioning versus agent-driven competitors.

Kevin set a short-term price target for Meta of $700, noting it closed at $666 and remaining optimistic it would reach that level soon. He also separately notes Meta's ad business fully funds its AI chip capex, reducing downside risk even without immediate AI ROI.

Kevin is very positive on Meta's product strategy, praising the camera-free smart glasses and the new bundled 'Meta 1' subscription tiers as smart monetization moves. He believes these new revenue streams will be highly profitable for the company.

Kevin highlights selling at-the-money puts on Meta as a way to capture elevated implied volatility premium heading into the Fed decision, implying comfort owning Meta at current levels. He also floats a longer-term thesis that Meta benefits from AI companies' advertising spend.

Kevin groups Meta with Apple as a recovery-play beneficiary in his bullish scenario tied to easing geopolitical and rate fears.

Kevin says he remains bullish on Meta, viewing its declining free cash flow as an intentional investment choice rather than a red flag, and noting the stock still trades at only about 20 times earnings despite a roughly flat year. He sees recent consolidation as the market questioning direction rather than a fundamental breakdown.

Kevin believes Meta could become an unexpected entrant into the AI compute-selling market, renting out its GPU/chip capacity if the price is right, which he thinks the market isn't currently pricing in. He frames this as a potential undervalued catalyst for the stock, while acknowledging his own possible bias given he holds Meta shares.

Kevin argues Meta is undervalued because it is the only major hyperscaler not monetizing its data center compute, and that a shift toward monetization (renting compute, API revenue, AI-driven business tools) could act as a major catalyst to close its valuation discount versus peers. He believes fair value is well above the current price and sees the recent lawsuit settlement as removing a major overhang on the stock.

Kevin argues Meta is undervalued and sitting in a penalty box due to lawsuit overhang and its status as the only hyperscaler not monetizing excess compute, but sees settlement of state lawsuits and potential compute monetization as catalysts. He personally believes the stock's fair value is around $1,300, well above its current trading level, while acknowledging rising costs and negative return on invested capital as risks.

Kevin remains bullish on Meta, viewing it primarily as an AI-enhanced advertising play with three billion daily active users rather than a pure data-center infrastructure bet. He gave a specific long-term price target for the stock.

Meta is mentioned as one of the companies that went to the markets to raise money, contributing to the liquidity drain Kevin describes, and its earnings (alongside Microsoft, Amazon, and Apple) are flagged as a near-term catalyst within the next two days.

Meta delivered strong Q4 revenue beats and positive Q1 guidance, but significantly higher AI capex spending of $125 billion (vs $110B expected) creates investor concerns about return on investment.