Stephanie Link Buys More Meta Stock Amid Tech Rally

Tech Sector Rally and Inflection Point

• 📈 The overall market, including the S&P 500 and NASDAQ, has seen a nice rally from the lows, with tech stocks up in the upper single digits.
• ⚠️ This suggests the market may have been oversold, and tech companies are viewed as strong free cash flow stories with significant moats.

Alphabet's Strong Performance

• 📊 Alphabet reported solid results, with search up 9.8% and YouTube up 10.3%, both considered in line with expectations.
• ☁️ Cloud services showed significant growth at 28%, exceeding expectations for a potential deceleration or miss.
• 💰 A key highlight was operating profits, with operating margins up over 120 basis points relative to expectations.
• 📢 The most significant positive takeaway was that advertising did not roll over, which is a major positive signal.

Stephanie Link's Investment in Meta

• 📌 Stephanie Link has been adding to her Meta position due to the strength in advertising and Meta's business fundamentals.
• 💬 Alphabet's search revenue, which accounts for 75% of its advertising, is positive for Meta, as advertising is nearly 96% of Meta's total revenue.
• 🚀 Link projects Meta to grow 20% in total revenues this year with 40% operating margins, trading at approximately 13 times EBITDA, below its historical average of 17 times.
• 💡 She views Meta as "quality on sale" and would consider buying more if the stock price drops, citing its powerful metrics and a large user base of 3.3 billion.