Jason Ware

Like when they spend a dollar on expanding their cloud capacity, that dollar shows up immediately in new AI workload demand.

Meta's got a different situation because they're not a classic hyperscaler, right?

They're building their own AI system.

llm model super intelligence whatever you want to call this thing and in in my mind it's like it's unclear why they're willing to spend hundreds of billions of dollars to sort of be a me too in the llm space like i think they even said it when they launched new spark they said it's comparable with chat gpt it's com it's on par with claude and it's like spending a lot of money for an on par

um, me to LLM and to what end?

Cause you're not a hyperscale.

You're not seeing like this immediate one-to-one demand in terms of revenue.

And so in my mind, it has to be about improving their, their ad product at the end of the day, but we're already seeing improvement in the ad product based on just like the algorithmic approach to AI and meta.

So I will say we are underweight meta.

We own it.

We've owned it for some time.

We're still bullish on it, but we actually carry a smaller weight in meta relative to some of these other large cap tech companies for this very reason that the AI strategy is so much less clear to us.

Their core business, which really matters more than anything else over the foreseeable future, the earnings that are coming from their ad business.

You know, we're seeing an acceleration of growth there, which makes us comfortable in owning the stock.

It's trading, you know, it got down to like 17 times earnings.

It's bounced over the last couple of weeks, as you noted.

So now it's back to like the low 20s.

So on a valuation basis, it looks attractive.

But I'm not I'm not clear how Mews Spark fits into the whole mix.

And I think Wall Street, most people on the street would agree with that.