☕ Should you buy Meta?

Good morning! 👋 

I’ve got a few hours of work yet to do on the OBA August issue (which drops tomorrow) along with a new recommendation intended to help tame the market’s wild side AND kick off some tasty income, too.  

With your permission, I’ll keep it tight and to the point. 

Here’s my playbook. 

1 – Meta is already making AI pay off  

There’s nothing like being served a big ol’ can of vindication. 

I’ve had no end of people tell me AI will never amount to much, that the benefits are years down the line, that it can’t possibly impact results the way I’m suggesting it will... yada, yada, yada. 

Props to El Zucko and CFO Susan Li. 

The two of ‘em spent a good portion of the call talking about how AI has already jacked Meta by improving recommendations and helping people find content while – and here’s the real meat – making advertising experiences more effective. (Read) 

Meta said advertising growth increased 22% or more than double what Google reported. 

The company also appears to be bouncing back from Apple’s change in privacy regs which were a material headwind for a while. 

I hate the idea that I might have to wade back into a few shares but that’s where I find myself this morning. 🤷 

Well done to all who are already on board – YOU nailed it! 

2 – Biogen beats 

Biogen reported Q2 earnings and revenue that topped estimates. It also hiked full year guidance. (Read) 

We have talked many times about medical companies post pandemic. The game is about cost-cutting as much as it is about sales. So, this is right on track to my way of thinking. 

What catches my attention is that sales of the company’s breakthrough Alzheimer's drug, LEQEMBI continue to track higher than anticipated. 

Biogen’s stock is about as inexpensive as it’s been in a while at a time when demographics make me think it could be right place, right price, right time. 

Hmmm. 

Keith’s Investing Tip: Many folks think hunting for small medical companies with cheap stock prices is the way to go because they might have a breakthrough. In reality, it’s the bigger players that are likely to. And with fractional shares of many great companies on offer, that’s no longer the problem it once was because anybody who wants can take a smaller “cheaper” position. Or, simply learn how to use options. 

3 – GE spinoff Vernova gets another upgrade 

GE split in two a while back and, voila, Vernova launched. 

Morgan Stanley just upgraded it to overweight from equal weight; heaven forbid they just say “buy” but that’s a story for another time. 🤦‍♂️ 

Shares have returned ~30% since March 27th versus the S&P 500 which has returned 6.63% over the same time frame according to Koyfin. 

If I didn’t already have an alternative energy provider I like better, I’d give it consideration. A dividend may change that at some point down the line but for now there isn’t one. 

4 – Powell says everything and nothing (as expected)

I hope you’re on board. 

Imagine what happens when he actually does cut rates??!!

5 – Ford's dividend is at risk imho 

Opinions about cars are like belly buttons... everybody has one. 

I just got a look at Ford’s new Maverick truck variant, the Lobo. (Read) 

And I like it. 

No word on whether it comes in Ducati red, but we’ll see. 

Orders start Friday, production later this year and deliveries in early 2025. 

Ford stock, not so much. 

Short or avoid – I think Ford’s dividend is at risk. 

Maybe $8 or less, possibly $5. 

Bottom Line 

Want to make more money?  

Spend less. Work harder. Invest.  

Repeat. 

You got this – I promise! 

As always, let’s MAKE it a great day. 

Keith 😊