🔥 META: Muse is exactly the reason I bought this company $META
When I talked about Meta over the past months, my thesis was never only about Facebook, Instagram, and advertising.
Quite the opposite.
One of the things that attracted me most to Meta was the question:
What can a company with billions of users, one of the best distribution networks in the world, and massive AI infrastructure create on top of that?
And now we are starting to get an answer.
Meta introduced Muse – a personal AI agent that is not just supposed to answer questions, but actually perform tasks for people.
Bookings. Purchases. Emails. Searches. Everyday tasks.
And this is where, in my opinion, Meta's strength begins to show.
Meta has something most AI competitors don't – distribution.
Facebook. Instagram. WhatsApp. Threads.
If it creates a good AI product, it doesn't have to wait for people to discover it by chance.
It can get it directly in front of hundreds of millions to billions of users.
Threads was a beautiful example of what Meta's distribution power can do with a new product.
And Muse may be the next step.
And monetization doesn't have to be just subscriptions
This is, in my opinion, even more important.
Many people think about AI in the style of:
"How many people will pay $20 a month?"
Meta doesn't have to think that way at all.
Muse and the broader AI ecosystem can help the company through:
👉 Business Agents 👉 commerce and shopping 👉 WhatsApp monetization 👉 higher engagement 👉 better ads and conversions 👉 paid AI features 👉 AI glasses 👉 completely new products we don't even know today
And all of this is built on an advertising business that already generates massive amounts of cash.
That's why with Meta I mainly look at OCF
Meta is currently investing an extreme amount of money into AI infrastructure.
And personally, during this phase, I find it more meaningful to track operating cash flow when valuing, because it shows the strength of the business itself before the company massively reinvests this money.
TTM OCF is approximately $130 billion.
At today's valuation, we are around 13× OCF.
And yet Meta is still growing and at the same time building completely new monetization layers.
That's exactly what I like about this investment.
A strong current business funds the future business.
I currently hold 18 shares of META at an average of $620.90 and the position makes up about 12.5% of my portfolio.
And from this position, I expect a very decent return over the longer term.
Muse doesn't have to be a huge business yet.
It doesn't even have to beat ChatGPT.
But for my thesis, something else is more important:
Meta is starting to show concrete products that grow out of the billions of dollars invested in AI.
That's exactly what I was talking about before.
And slowly but surely, it is starting to happen.
Muse is not a new investment thesis for me. It is further proof that the original one is starting to come true. 🚀