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Do investors 'like' Meta Platform's earnings report? A top tech watcher weighs in - YouTube
Channel: CNBC Television
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for more on meta's quarter let's bring
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in fast money friend gene munster of
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loop ventures gene what do you make of
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this 18 percent bounce
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i'm relieved lupe is a shareholder and
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relieved on that i think that the 2
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billion dau number keep in mind that
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they had a headwind with the eu related
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to eastern europe and i want to just
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emphasize on that quickly melissa is the
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dau number is the network that is the
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core value ultimately which facebook has
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we know that that's the reason why elon
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musk bought twitter he could have
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started his own social network but
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getting those uh connections in place is
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critically important so maintaining that
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in the face of tick tock is a strong
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evidence that this network effect is
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still valuable so that's part of the
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bump i also would point out uh that arpu
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was up four percent year over year and
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as we think about that handoff between
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stories to reels to this competitor to
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tick tock and the monetization piece
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they are actually making headwind
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they're making they're making progress
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in terms of making more money from each
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user and so there were two pieces that
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were uh most encouraging around this
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unfortunately for investors is they are
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still going to hear a lot about tick
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tock from uh their people around them uh
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potentially use tick tock themselves a
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lot and i think that some of that
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concern is not going to go away on this
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print we're going to fast forward three
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months and we're going to be on pins and
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needles to guess what that dau number is
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but at least for tonight we can rest
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well knowing that that platform that
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network is intact
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so gene when the company tells us that
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the ad tracking changes are going to
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cost or potentially could cost
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10 billion in 2022
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and that's coupled with who knows how
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many billions for
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metaverse ramp up from there
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even though this was a a great relief
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rally and you you uh mirrored that
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sentiment
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do you think there's just too much gray
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area right now for the person who's not
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a believer to invest a new dollar in the
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market in facebook in meta right now
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i i think just you have to take into
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consideration what the valuation is some
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of the thoughts that karen has and all
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that's true everything you said is
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absolutely true and it's also true that
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it's uh assuming they can hit that
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number for next year which i think is is
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doable that's trading right now at 14
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times and so when you think about gray
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areas i think about in the context of
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valuation and relative to the
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opportunity and so yes those two factors
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idfa and navigating that they have to
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build their own ad tracking platform uh
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that is going to be a piece to it uh
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tick tock but there's also this sense of
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owning a company that can
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essentially make a shot at the metaverse
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i am a believer in the metaverse i've
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been pretty vocal that it's a world that
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i don't want really much of any uh
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partner because i think it's just gonna
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consume more and more of our time as an
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investor i think that this is an uh a
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segment that is going to continue to
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gain attention in the years to come and
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so steve putting it together i think
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that
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it falls more into a green area versus a
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gray area from my perspective because to
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get a shot at the metaverse and a
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critical company trading at 14 times
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earnings uh that that combination
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usually doesn't line up very often
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so gene thanks for being on it's karen i
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agree with just about everything you
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said putting all of those factors
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together what do you think it's worth i
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agree with you 13 14 is not the right
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multiple what is
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the right multiple
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so uh we're going to let me jump forward
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uh six months from now once recession is
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priced and i think that that's something
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that's going to impact all big tech but
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to answer your question i think that
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this should trade generally at what
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earnings growth should be at and that
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should be somewhere in the 18 to 22
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percent range so
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i think
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i would put a fair multiple on this at
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around a 20x next year's earnings really
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quick gene you don't think uh recession
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is priced into big cap tech i mean even
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facebook for instance down 40 plus
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percent going into this print that
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wasn't pricing and recession at all
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no i think what's going to happen is
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we're going to get this relief i think
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apple numbers are going to be strong i
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think that investors are going to um
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quickly shift their attention to what
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happens in the june quarter and the
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september quarters
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i i vividly remember as an analyst in uh
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one of in the pullbacks of the financial
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recession uh the feeling that everything
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is going great with these companies but
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there's something out there that could
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really slow things down in fact that
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does uh happen and so i think that we're
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still haven't hit the bottom here it's
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going to be bumpy across the board for
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all big tech i think once the numbers
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start to get ugly from a recession
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standpoint let's say in q3 q4 once
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companies start talking about it from my
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perspective that's when the bottom is
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and i want to end on a good note here
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melissa what that sets up is 2023 i
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think is going to be a solid year i
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think you need to be positioned in these
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companies exiting this year in
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anticipation which should be uh may i
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dare say a great year for tech in 2023.
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silver lining to a recession
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you
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