Financial Education on $META (Oct 26, 2026)
The speaker is pessimistic on Meta short term, expecting it to remain range-bound and disappoint near-term all-time-high hopes, with the stock down about 17.5% in two weeks. Over five to ten years he is very confident, citing its valuable businesses and Zuckerberg’s ability to change course, and argues profitable Meta is cheaper than loss-making Anthropic, though Meta spends all it earns and may borrow or issue shares.
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Meanwhile, Meta's stock keeps falling. It's down about 17.5 percent in just the last two weeks. This is something I've been warning about regarding Meta. Although I'm optimistic about this company in the long term.
If you've ever heard me talk about it this year, I'm very pessimistic about the short term. I've talked countless times about this stock being range-bound in the short term, haven't I?
So, while I'm a long-term investor and very confident in the company for the next five to ten years, I'm not a short-term believer, and I never have been. This just proves that every time you think this company is going to hit an all-time high, you're always disappointed.
At least in the short term with regard to this company, right?
Meta's total market capitalization is $1.6 trillion. So, we're talking about half a trillion dollars less than what Anthropic will go public at, or maybe even more than half a trillion dollars less, right?
What do you get for Meta? You get Facebook, Instagram, WhatsApp, Threads, and Muse AI, and we'll see how big that opportunity is in the long run, right? It's started off pretty well, but we'll see.
Maybe it's the next big thing, maybe No, I don't know. But the moral of the story here is that you get some of the most valuable businesses the world has ever seen. It's incredible.
Facebook is an extraordinary business that represents a generation. Instagram is a business that represents a generation, isn't it? WhatsApp, I mean, you're talking about billions of users who use it to connect around the world.
And Threads, now, as I understand it, has surpassed X in terms of users. It's incredible what they've achieved there, isn't it? Then there's Muse, the AI company, which has started off well, and we'll see if it eventually becomes something big.
But you get that whole company, and you get Zuckerberg, who has proven his ability to change the course of the company, because the most important thing if you're in business for a long time is proving your ability to change course.
Just creating one business isn't enough. You have to be able to go into new products and services over the years to keep your business relevant and keep it going.
Does it make sense that you're paying more for Anthropic than you're paying for Meta? With simple logic, and if we look at the numbers together, you'd definitely say: "That doesn't make sense, because Meta is making a fortune, while Anthropic is losing a fortune,"
Meta, we know they spend every penny they get, which is a lot of money. And they'll borrow or issue shares for it. We know that.
Meta, I was buying Meta stock for less than $100 a share in 2022. Nobody wanted Meta.
What this channel has said about $META
Financial Education has 8 calls on this stock; only the adjacent ones are shown.