Meta Platforms: A Peter Lynch Pick

Summary:

  • Not every investor can pick 10-baggers like Peter Lynch, but there are some proven and repeatable rules that can help.
  • This article examines Meta Platforms, Inc. as a fast grower using Lynch’s guidelines.
  • Besides other commonly analyzed financial metrics, its inventory (rather, lack of inventory) is a key competitive advantage.
  • Meta Platforms’ PEG is a bit above the 1x ideal Lynch pick. Although the premium is quite mild (my estimate is ~1.2x) and totally justifiable.

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Thesis

Peter Lynch is renowned for his ability and success in identifying 10-bagger stocks. Not every investor has such talent and ability. However, there are some proven and repeatable rules that can help. Lynch’s book, “Beating the Street,” outlines his approach. He categorizes stocks into

META

Source: www.statista.com

digital ad

Source: Digital Ad Spend (2021-2026) by Oberlo

META

Source: Seeking Alpha data

META

Source: Seeking Alpha data

META

Source: Seeking Alpha data

META

Source: Author based on Seeking Alpha data

META

Source: Seeking Alpha data


Disclosure: I/we have a beneficial long position in the shares of AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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