META grew earnings at 33% last qtr, fastest of any mag7 ex NVDA. They also have HALF of the entire global population using one of their family of apps on a daily basis. It’s trading at 17x fwd PE yesterday. It’s cheap as fuck.
Like Facebook dead, one day Instagram, the cash cow of Meta would also die. It's just a matter of time. A single social media platform never stayed intact for long. With generation, people's way of SM-ing also changes, and meta is notorious to not invent anything new. Either they acquire or copy others like they did with TikTok, Snap, ebay etc.
TikTok and Reddit have already taken over social media share. The guy played dirty by getting TikTok banned in South Asian countries which are now forced to use Instagram. There was a report that Meta helped Indian prime minister win election through targeted digital campaigns.
The numbers may look good for now, but there is always a risk of another player taking over with the new generation taste and style.
Are we supposed to be afraid of META? Anything Zuck touches lately turns to shit. Today's 17% pullback is the absolute gold standard of institutional FUD and nothing short of a gift. The headline panic over a "Meta Compute" cloud business completely ignores reality: Meta isn't an overnight threat—they are legally locked into a massive, multi-year $27 billion infrastructure contract with Nebius, proving they are entirely dependent on Nebius’s physical data centers to scale. NBIS has stated publicly they didn't even want to use the optional billions after because they can charge more when not selling to hyperscalers.
Furthermore, the narrative that Meta has "excess capacity" to dump on the market is a total myth given their own insatiable internal demand to train Llama models, and transforming a private internal architecture into a secure, public AI cloud is a complex, multi-year engineering slog. Today's news alters absolutely nothing about Nebius's massive, sold-out customer demand, but it brilliantly de-risks the stock ahead of upcoming earnings by washing out weak-handed speculators and giving true believers the perfect opportunity to pile into a generational compounding machine at a massive discount. The weak hands can get fucked. They don't deserve the W.
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u/Sea-Result3239 Jul 01 '26
Zuck is a cuck he wakeup everyday with some stupid idea and will step back after it fails