Investing Daily: Is Meta the Top AI Buy Right Now?

In this Market Mondays clip, Ian Dunlap and Troy Millings dissect the AI stock landscape—focusing on Meta’s stunning turnaround, CoreWeave’s risk profile, and the heated debate on Palantir’s sky-high valuation. Troy shares why Meta is a “buy” for him following its recent dip, praising Mark Zuckerberg’s aggressive CapEx strategy and commitment to AI innovation—including the success of Meta’s wearable glasses and major data center expansion. Ian, once skeptical of Meta’s Metaverse investments, highlights how Zuckerberg’s recent investments are landing at the right time—contrasting this with Apple’s more reserved approach and arguing Zuckerberg may have outperformed Tim Cook in 2023. The conversation shifts to CoreWeave, where Troy identifies concerns over debt levels and depreciating assets as the company expands its data centers. He notes that although CoreWeave’s partnership with Nvidia is promising, relying on lower-tier GPUs and significant borrowing could hamper long-term prospects. Both agree that after the IPO lockup period, many investors wisely took profits as the stock pulled back dramatically. When it comes to Palantir, Ian and Troy spar over its mammoth valuation. Ian recognizes Alex Karp’s capable leadership but points out that Palantir’s forward P/E of 185 is far too high, even suggesting its fair value would be in the $21-$30 range rather than its recent peaks. Troy echoes concerns about revenue matching expectations, labeling Palantir as the “poster child” for inflated AI stock valuations, driven by its global government contracts and status as a defense-tech leader. Whether you’re looking for sharp opinions on big tech moves or cautionary tales from the AI investment craze, this clip delivers invaluable insights for navigating today’s volatile stock market. *Timestamps:*

• 00:00 — Meta’s AI comeback and investment strategy
• 02:29 — CoreWeave’s debt dilemma and Nvidia connection
• 05:44 — Palantir’s valuation and market risks

*Join the discussion in the comments below! Are you bullish on Meta or does Palantir’s valuation scare you off?* #Meta #AIStocks #StockMarket #Investing #Palantir #CoreWeave #TechStocks #MarketMondays

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Episode Transcript

Speaker 1 (00:01):
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Speaker 2 (00:43):
I think Meta definitely in this class is incredibly strong.
Hell of a turn around from twenty twenty two. I
think it's unfair, but I think it's just like general
market conditions that's dragging them a help a lot lower.

Speaker 3 (00:57):
With you one hundred percent.

Speaker 1 (01:00):
Metal as a buy in fact, I when I saw
it drop fifteen percent, I bought it.

Speaker 3 (01:06):
Now it's down.

Speaker 1 (01:07):
Twenty three, I might have to add some share to
the portfolio again. I like the aggressiveness of Zucker Berg
their cap back spend. You know, they said they're increasing it.
They're all in on this. They understand the severity of
winning this this this AI race. They have the innovation,
they have the data. When you're talking about all the
platforms that they have at their disposal, they have products.

Speaker 3 (01:29):
Now that the glasses are doing pretty.

Speaker 4 (01:31):
Well, they are doing incredibly well, and they're expanding their
data center expansion in their vision for AI, all pun
intended is very clear, and it's going to cost, and
their understanding of that, and the fact I think, you know.

Speaker 1 (01:46):
People took took his cadence during the earnings call a
little to heart and say that he was a little
two lackluster and a little frivolous about how you're speaking
about the cap backs.

Speaker 3 (01:57):
But it's dual and fascinat that's the part that's it.

Speaker 2 (02:02):
If he did okay, and I was super critical of
the metaverse investment that in that story, but he's investing
into the right things at the right price at the
right time. To not be left behind when Apple didn't
and they get punished makes no sense. You can argue
I won't do it this week. But this year Zuckerberg

(02:24):
has been better than Cook, there's no question.

Speaker 1 (02:28):
Oh the resurgence has been incredible, right, like we're talking
about I mean, it was down in the four nineties.
I know it pulled back obviously during the deep Seak thing,
but it's rebounded. Was at seven over like seven to
fifty at one and obviously it is pulled back here.

Speaker 3 (02:45):
And you know, it's probably one of those gold rules
in investment for me.

Speaker 1 (02:47):
If if an asset that I truly truly believe in
is at a discount, if it's between twenty to thirty percent,
and then I also see the options down thirty.

Speaker 3 (02:59):
It hits the check check, check check.

Speaker 1 (03:02):
All I got to do now is executing and Matter
has done that and it's done it again, might have
to reposition it, but yeah.

Speaker 3 (03:07):
Strong margin.

Speaker 2 (03:10):
That margin is thirty two.

Speaker 1 (03:12):
Yeah, which is which is the opposite for a company
like again, all these companies not created evil Core. We've
we've been speaking about it, and I know it's one
of the companies you just said, but we've been saying
six months. Six months has been our golden rules. Six
months came in September. It's been trending downwards since they reported,
and I like Core, We've I've always said, I liked it.

(03:34):
The only thing that troubled me was the debt, right Like,
that matter their data center expansion, it's not they had
to take on debt to expand.

Speaker 3 (03:46):
Now they do have in Video as a partner.

Speaker 1 (03:49):
But when you think of how they're using in video,
right like, in Video is supplying GPUs to them, but
they're not the top of the line GPUs, right like,
it's not black Well, it's not Blackwell, Ultra is not Rubin.
They were using the age twenties, and so the Hoppers
for those who are in the know. But when you
think about that, right like, people are going to lease

(04:12):
that compute, but they're leasing it at a lower tier model, right,
So that almost becomes a depreciating asset every time the
company puts out a newer version. So by the time
you're using the Hopper and they've already had Blackwell, by
the time you got Blackwell and you're least they've already
they've all and then it's Ruben and it's Rubuilt, and
so that becomes a depreciating asset. That business model is interesting,

(04:35):
but the debt that they're taking on to expand is
concerning because they have to generate a certain amount of
revenue just to offset it, and it doesn't look like
they're doing that right now, which is why you sort
of stop full so greatly from I think one things
training at like seventy.

Speaker 3 (04:49):
Dollars now and so that that's my my slight issue
with cord we.

Speaker 1 (04:53):
I think it'll be here obviously, as Nvidia is has
a vested stake in them, But that's my major concern
record with Even.

Speaker 2 (05:00):
With that, koeve having a partnership with in video Kobe
is a mistress with a lot of debt. Just because
you get to hang out once a week, it does
not mean that your primary investment is over with all
y'all who kept acting like y'all in the video. It's
over with all the holders.

Speaker 3 (05:19):
Some debt is good.

Speaker 2 (05:20):
Just a prime example.

Speaker 3 (05:21):
While it's not no what you're saying they're over with Koe.

Speaker 2 (05:26):
Not saying that they're not a class.

Speaker 3 (05:29):
No. I started it by saying.

Speaker 2 (05:31):
You know, but it's a lot of people who were
like what they're going to Yeah, you know what?

Speaker 3 (05:36):
Because people people traded it and they did make money.

Speaker 1 (05:38):
So I'm not mad at those people who like, hey,
I was part of the I p O when it
was at forty and then around great.

Speaker 2 (05:44):
I'm all for if you were in a private market,
but even the people at the private ship they got
rid of it that it's a shot, that's the stock game.

Speaker 3 (05:52):
They're the selloff.

Speaker 1 (05:53):
That's why I said we got away six months, because
after that six month hold up, we're going to see
people say, all right, we're taking profit. We've made money,
we've had pre ipo, this is a nice run up.
Let's let's take some profit off the table for events
like this. Whereas now trading at seventy. So we'll see
where it heads over the next couple of weeks. We'll
see Wednesday again will be a teller, right.

Speaker 2 (06:11):
Like if they'll bounced back eventually get back into the
ninetiese hundred range. But they that run up from forty
to like one seventy.

Speaker 3 (06:20):
Yeah, it was crazy overvalue. Chat put in chat, hit
the like button. Shit, what about pound two? I think
poundt's issue is evaluation. IFU like seventeen high, bro, but
what's the number? Seventeen seventeen hundred.

Speaker 2 (06:38):
Is too hot? Like great company, I don't like what
they do. I'm starting to like Alex a hell of
a lot of the CEO I won't lie. I don't
like the mission because of how it affects black and
brown people. But when it ran from five to eighty
four to two of seventh, great returns. If you made
money on it, I'm incredibly happy. But I don't know technically, Okay,

(07:05):
if Palaenteer is publicly traded, Anderil getting as much coverage
and lore around it, it's scary. If I'm a Palenteer owner,
for sure. Now is there an ecosystem of both of
them can thrive? And I think, of course Alex is
a elon ask CEO where he's driving a lot of
the value through his vision, work, ethic, selection, and curation

(07:31):
of executive management team.

Speaker 3 (07:33):
For sure.

Speaker 2 (07:34):
But the valuation on this company is too hot. And
I even think if you look at Peter Tiel and
Alex would if you've got them in a private conversation,
they will tell you the same thing. Like the true range,
they should be in the one twenty one thirty range.
If they were there, there would be more room to go.

Speaker 3 (07:56):
But they hit their high for the year, for sure.
The forward PE is one hundred and eighty five. That's
fucking insane.

Speaker 1 (08:05):
So I mean the revenue, the revenue isn't matching that
just yet, will it at some point? Right when we're
talking about the amount of government contracts that they will secure,
and I'm not just talking domestically, I'm talking like global
government contract and that I'm sure that they'll play a

(08:26):
role in Yeah, that number that that that that revenue
has to come in at some at some point that
could even match this. I think they're they're a victim
of Hey, this thing is run too high. People are
talking about an AI bubble. This is AI tech and
the in the sense of having defense tech.

Speaker 3 (08:44):
Who is the poster child for high evaluation?

Speaker 1 (08:46):
I think they're the poster child and that this is
this is the repercussions of it.

Speaker 3 (08:51):
Just pull back here.

Speaker 2 (08:55):
After the Nvidia trade took off so well, everyone was
looking for or the next thing to park money into
great company once to get don like the Mission earners.

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