Meta Q1 - Deep moat

Meta's first quarter results came out last week, and they were well ahead of expectations. Revenue for the 3 months was $42.3 billion, up 16.1% year-on-year. They are taking a larger slice of the overall digital advertising pie.

Their heavy investments in AI and infrastructure have created a deep moat, supporting continued user engagement growth on Facebook, Instagram, and WhatsApp, and delivering superior advertiser performance, at tremendous scale. The total number of people who access one of their services daily is now 3.43 billion, which is about 64% of the world's daily internet users.

Mark Zuckerberg is as hungry as ever. I think he might be the best CEO in America? Remember, he's the founder and controlling shareholder, not some hired hand. And he's only 40 years old.

Meta is a great business already, but they remain hugely ambitious. They are launching app-based AI tools to compete with OpenAI and Google and have a decent chance of breaking into search advertising (currently owned by Google).

They keep chipping away at wearables, especially web-connected eyeglasses, trying to capture some of the internet-access device market (currently owned by Apple).

Meta stock has traded higher since the results, rising above $600 per share again. The stock price is probably being held back somewhat by the heavy capex outlook. The all-time high is $740.91.

If you don't own Meta shares, now is a good time to add some to your portfolio.