The AI Strategy That Pulled Meta Back Into the Game

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4:19For sure. Okay, let's talk about Meta. And really quick for the person who said what happened to the crash in 2027, I said two weeks ago, it's not going to be a typical crash. It's going to be economic crash as expressed in the McDonald's Under Armour Lowe's Home Depot chart. It's going to be the crash of the have and have nots. They're going to make sure that the money flows to the haves, which is the stock market, public equities. And then if you're not invested, you're going to be penalized and punished. I appreciate you. Back to you, Troy Rashad. Too many of you spend time making snarky comments opposed to just running the bag up.

4:58But let me help you. Can I sponsor his membership into EYL University? Absolutely. See, I'm going to talk shit and give. But I want you to only talk shit if, like, when you check that portfolio, that shit got some commas in it. But let me sponsor you into EYLU. run up the commas run up the commas please

5:28meta was up $76 today and it's up 34 % I believe for the month so it's having a strong rally right now so you talked about the new AI that is rolling out so meta a company that we've been talking about for so long. I personally always respected what Meta built. And I always respected the legacy of Instagram. It's a legendary life changer. Yeah, for sure. And the brilliance of WhatsApp and the brilliance of Facebook too. And here we are now. So, Meta, what is the deal with Meta? Meta is, obviously, when you talk about the difference a month makes, right? Think about this. A month ago, they were sitting in front of Congress, settling a lawsuit because of some of those apps that you just spoke about.

6:35And what we saw today, although those apps are prominent in the wheelhouse of Meta, what they have now created and we talked about it a few weeks ago I think last week I asked you if you use Muse shout out to the meta team they had sent it over and I was like look y 'all got something that's incredible right in terms of ease of use this is probably the easiest one in terms of AI agents that I've seen because of how simple it is to use so much so that was last week two weeks ago we got it last week we spoke about it if you look in the app store right now it's the number one free app in the app store in front of ChatGBT.

7:15What does that mean for Meta? Well, based on what we saw today, shout out$82, they're looking at it like, hey, we have now a wheelbase to generate income from subscriptions. So they're already estimating that they could generate up to$30 billion in revenue by 2030. So why is that important? Because we know the ad business is like the predominant revenue source when we're talking about Facebook and we're talking about Instagram. but now you have a new source with ai they tried it with meta ai kind of didn't go the way we thought they had managed and then we saw what happened with menace but that was the first indication that hey we need to have a new revenue source and now what we've seen with muse they got something that is functional that's easy of use and i'm telling you once people start using it this is going to be the thing because it already has so much data because of the database that Meta already consists, right?

8:09You're talking about, I mean, 8 billion people in the world. They have 3.4 billion across their platforms. You're talking about nearly 45 to 50 % of the population. They have their data. So now what can you do with that? This is a key moment in the history of Meta. Number one, because of what they just came from a month ago. But also think about the times. On Wednesday, they're going to have their tech summit. And so there's an anticipation that there's more things to come. There's going to be more talk about what they're going to be doing with Muse in terms of AI. Everybody was saying, hey, that CapEx spend is too much.

8:47How are they going to justify it? How are they going to justify it? Well, this is the first sign that we're seeing of a CapEx spender, a hyperscale spender saying, hey, we now have a revenue generator, which is a change in the story. That narrative of how are they going to make money? How are they going to make money? They keep spending. Well, here we go. Here comes Muse. They've done a great job. I want to talk from a technical level first. Anytime Meta's kind of hovered around at 523, 60 to 485 level, it was a great area to buy. So Jensen has talked about it being like a value hyperscaler. For a long time, Meta opened up at 660, 273.

9:31It spent most of the year underneath that yearly open. But any time that they've hovered around that 540 and down price, it was a really good time to buy. For my swing traders, if you've been swinging this for a couple of months, one of the key levels I was looking at was$6.93 for it to break above. We're clearly above there now. But I think this is a prime example of, and I've said it at the top of this year, I think they've been grossly mistreated for how they ran the company because I think they've done an incredible job. But with this introduction and the Instagram Plus and a few other initiatives that they have in place, I think they will be fine long term.

10:12Four-year revenue up 22%. Operating income is up 20%. Operating margin, approximately 41%. Net income is$60 billion. Ad impressions is up 19%. I think if we are going to talk sector rotation, which I hate, I think they got pummeled because there were so many other stocks that were given a higher return. But if you're looking long term, you would be remiss to not buy this one at that price in that 540 to 515 range and hold it for long term. Yeah. On August 24th, it was sitting at 555. August 24th, less than a month ago. 551 on August 24th. And here we are getting ready to test new all-time highs up there over 800.

11:03Yeah, I think it's just a race to 800 at this point. I think it's definitely a race there. What's interesting about Zuckerberg is like, we've seen this happen so many times. He goes to Congress. He has a product that doesn't work. They still rebound, right? It was, whether it was the metaverse, changing the name of the company, they still rebound. when it was the Oculus and it was, you know, the Rediverse that didn't pan out the way they thought because they tried to buy Celebrity didn't have any of the functionality. Here comes Muse. Man of Stainwork, here comes Muse. He just has a way to just maneuver through turbulence and keep the ship going to all time miles.

11:46Well, they have an essential product and sometimes you just got to use the eye test that's why i was never really concerned that um tiktok was gonna overtake meta because they have a core fan base that was never gonna go over to tiktok they do have still have some problems with probably young really young kids but millennials and generation x are all on instagram and the baby boomer generation is all on facebook and if you want to communicate with anybody that does not live in America, you have to use WhatsApp. So they essentially have three pools of people. And how can you lose when you literally have half of the world's population that depends on you in one way or another?

12:33Because it's not just a social media app, it's a dependency app. You need Instagram for your news. You need Instagram for your amusement. You need Instagram for your relationship, dating, life. Facts Now you're cooking my boy Ernest what's up look on Ernie Leisure we're all about smart money moves And here's one that most people skip Car insurance renews on autopilot The rates creep up and nobody tells you That's what Insurify fixes In about two minutes completely free You can see rates from more than 120 top insurance companies And if there's nothing better today They keep watching and notify you When there's a better rate So go to Insurify.com That's I-N-S-U-R-I-F-Y dot com.

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