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Founder and Senior Portfolio Manager for the Satori Fund, Dan Niles, said Monday that Meta Platforms Inc (NASDAQ:META) stock would “go vertical” if TikTok was banned in the U.S.
The hedge fund manager explained in a Twitter Spaces with Investing.com and Street Insider that Meta Platforms’ September quarter earnings, revenue, user growth, and engagement were good, but the problem was what the social media giant revealed it would spend on the metaverse.
However, he added that the company can always reverse that spending decision, and there is nothing wrong with Meta’s core business, and he sees room for growth.
While he does not expect TikTok to be banned in the U.S., Niles revealed that if it were, Meta Platforms’ stock would surge.
Speaking on the recent buzz surrounding AI and ChatGPT, he balances the long of Meta with a short of Alphabet (NASDAQ:GOOGL) as the costs from AI search swell, weighing on the company’s margins and, therefore, profits.
Even so, while Niles stated that AI is overhyped in the short term, over the long term, he feels it is under-hyped and that NVIDIA (NASDAQ:NVDA) will be a beneficiary.
Finally, commenting on Tesla (NASDAQ:TSLA), the Satori Fund founder believes the electric vehicle giant is a “fantastic company,” and he owns a Tesla vehicle, but he questions the company’s valuation at 52x EPS and says short-term self-driving is too hyped.
