META & PTON: Finding Value In Big Tech Stocks

Despite all the negativity around Meta Platforms (META), there’s great value at current stock prices, says Greg Martin. He discusses META, noting that it will continue to be a major player in billions of people’s daily lives. He also talks how markets are rallying to start the week. He then goes over why big tech stocks have lagged the market. he mentions big value tech stocks such as Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN). He then goes over his stock pick Peloton (PTON). Tune in to find out more about the stock market today.

All right let’s switch over to technology which sold off significantly this year let’s take a look at some areas of potential opportunity for you greg martin’s with us co-founder managing director at marine maker securities thanks for being here greg your thoughts i mean are we are we done with the worst of it no thank you for having me nicole it’s good to see you

Again it’s always difficult to call the ball but clearly you know some great companies have been battered significantly this year you know you look at the top names like google apple microsoft amazon you know uh and then and then you look for you look beyond that you know you look at meta down 63 percent and i do believe that there has been some over beating down

In some of these stocks uh you know these are great companies with great cash flows that can weather as a storm with strong balance sheets and so i i personally like to find opportunities like this it may not i’m not calling the bottom necessarily but i think the market is priced in a lot of negative news and there’s still potential for things to turn around you

Know we could start getting more positive inflation uh prints i think there’s more you know a stronger feeling of where the fed will end up and these are really strong businesses and so i think now is an opportunity to find attractive entry points for some of these market leading tech companies that still have great businesses and attractive growth prospects and

The fact that oil is now behaving i just saw that oil settled lower today and um you know there seems to be a theme today i don’t know if it’s because the markets are higher but people are feeling less bad um you know why the shift you know i mean less bad is always a an interesting way to put it i i do think that you know we saw uh you know people have still

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Had inflation concerns we saw that you know that they got rid of tax cuts in in england so there was you know a feeling that maybe the uk was going to be dealing with inflation i still think there’s plenty of concern about you know what the energy situation will like be like in europe and how that will impact the european economy so there’s still there’s still

Things that i think concern people uh days like today make people feel like there’s you know hope for upside um and and i think part of the shift is the market kind of hit a point where people said okay enough is enough you know we saw that a little bit last week we had you know a massive snapback you know on thursday and you know we’re seeing that again today i

Expect it’ll be pretty choppy i think we’ll see a lot of volatility in this market as people still try and figure out what the impact of a global inflation will be like what how deep the recession will be so i i think there’s enough of a floor that i would feel comfortable getting into equities again but i think it’s still a lot of volatility ahead right so all

Of these tech companies like google and amazon and meta and salesforce and microsoft that you’re noting that are down 30 40 50 60 percent that is down 60 um are they buys i i i use opportunities like this as as a good entry point for these companies these are great long-term businesses still despite some recessionary courses you look at google down 33 apple down

25 percent microsoft you know so i view these as attractive entry points these are companies that have cash to buy back shares they can pay dividends um and and they will be market leaders and frankly in times like this you know the the strongest companies end up being stronger you know i think it’s more of a challenge if you have a lighter balance sheet and so

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I think these companies will remain strong you know i add salesforce to that list and so i view these as attractive entry points i know there’ll be some volatility we may not have hit bottom on these but i feel like you’re getting in at very good pe multiples right now for these businesses and you know i kind of i kind of use these opportunities to just build a

Larger position and i hold these businesses for a long time and don’t look back right so those names are the ones who say buy a current lows and don’t look back apple amazon microsoft and google um overall how about the s p 500 do you have other sectors that you like or is it really tech that you like to focus on because this group has these are great companies

That you’re talking about yeah i focus on tech i mean i’m not sure so i use uh you know other well money managers to help me you know find more dividend paying defensive industry investments so i’m really i’m really more of a a tech investor myself and i use experts to help me in you know those more safer categories so i’m really i’m really more equipped to talk

About tech what about some of these other names that i see within the notes peloton and nike and disney and lulu and uh you know we did talk about apple’s products and things but some of the other names that we didn’t mention yeah well i i i use peloton as sort of an example of a little bit of an off the beat the company that’s beaten down by about 90 95 since

It’s high um you know if you look at peloton it went public about three years ago and had about 300 000 subscribers three years later it has over 3 million subscribers uh who don’t turn have a very high net promoter score one of the you know top 100 leading global brands one of the number one brands in you know connected health uh which is a a fast emerging category

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And their problem is they just got a little over a lot over their skis in terms of growth projections they way over built their production and manufacturing capacity they have huge inventory problems they burn through a lot of cash and so the market has really hit that stock but they have an excellent ceo barry mccaffrey who was cfo of netflix for a long time cfo

Spotify from you know from taking it public to recently this is a guy who really knows the consumer subscription business and peloton has a great subscription business you know with three million subscribers representing about a billion three of recurring high margin subscription revenue um they ought to be worth more than 2.6 billion um and and i think that the

Business has that once they get you know the business right size and they they’ve they’ve gotten out of sort of directing securely focused on direct to consumer they’ve done deals with dick’s sporting goods and amazon and i think they get the business profitable i think they will they they will either have a good long-term future or more likely i think they’ll be

Acquired and and the reason i mentioned disney and nike and amazon and apple is because i think one of those companies will buy them because this is a jewel it’s it’s in an area that they care about connected health uh and they’re the leading brand in the space and i think the 3 million subscribers are very valuable and i think i expect i i actually think this is

A good short-term play because i wouldn’t be surprised if there’s an m a transaction within the next six months for peloton and that was my next question so you answered that and that i think that a lot of people are talking about that as a possibility that it won’t be lulu they already have the mirror um but maybe some of these other names might be interested so

That’ll be an interesting story to cover greg martin rainmaker securities thank you very much great to see you

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META & PTON: Finding Value In Big Tech Stocks By TD Ameritrade Network