All Aboard the Meta Hype Train
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, we’re talking about:
All Aboard the Meta Hype Train!
Choo! Choo!
Do you recognize this title?
The more I do this, the more the markets rhyme.
This is…
All Aboard the Meta Hype Train!
This week was the big Zuck ball of Meta Connect.
The company that bought brought you Instagram now has Meta glasses, a Meta keychain, and a new Meta bidet…
Probably.
I don’t know.
I didn’t pay much attention to it.
I am just a lowly accountant.
But what I do pay attention to are the financials.
And when the financials tell a different story than the narrative, I take notice.
Don’t believe me?
Allow me to take you back in time to March of 2025.
I wrote you a fun little article titled How to Double Your Money in the Stock Market: Google It.
The thesis was pretty simple:
1. Google was one of the most profitable companies in the world.
2. GOOG was projected to continue growing rapidly.
3. They were at a valuation lower than the average S&P 500 company.
This was all due to an unfounded narrative that wasn’t showing up in their financials.
Then, in September of 2025, I wrote you a fun little article titled All Aboard the Google Hype Train.
What changed with GOOG?
Well, nothing fundamentally.
But the narrative started to turn, smart money started to wake up, and analysts started paying attention to the financials again.
Aaaaaand the price shot from the low $200s to $400.
Then February of 2026 rolled around, and I wrote you a fun little article titled How to Double Your Money in the Stock Market: Meta It.
The thesis was pretty simple:
1. Meta was one of the most profitable companies in the world.
2. META was projected to continue growing rapidly.
3. They were at a valuation lower than the average S&P 500 company.
This was all due to an unfounded narrative that wasn’t showing up in their financials.
Which brings us to today. Here I am writing All Aboard the Meta Hype Train, and boy, this chart is looking familiar.
What changed with META?
Well, nothing fundamentally.
But the narrative is starting to turn, smart money is starting to wake up, and analysts have started paying attention to the financials again.
Now, the company that was “spending too much on AI”...
Has the number one AI app in the App Store, dethroning AI rival ChatGPT.
A-Muse-ing.
Get it?!
The negative press and hard "Sell" ratings have turned to radiant praise and glowing green “Buy” signals.
Again, I don’t know much about AI.
But I know when they released their earnings back in July, they were growing revenue at 28%.
And had 3.6 billion people using their apps daily.
And are projected to grow their earnings at nearly 20% over the next five years.
And now we can throw in that the $130 billion to $145 billion META is spending on CapEx this year might just so happen to produce some results?
Well, it’s all aboard the hype train, folks.
Think you’re too late to hop on?
Even after the surge this week, META is still at a 24 FWD P/E, making it still one of the cheaper tech companies.
Choo! Choo!
Final Thought
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett
