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I'm Buying More Meta After The Settlement - Here's Why

Daniel Pronk•Aug 28, 2026

Summary

Daniel argues that the current market is heavily driven by narratives and emotions, which creates opportunities for fundamental investors to capitalize on mispriced assets. Daniel focuses on Meta's recent $18 billion settlement over a decade, which Daniel considers non-material as it represents only 1.4% of Meta's annual operating cash flow. Daniel points out that this settlement removes the scary $1.4 trillion headline risk, providing a clear path for the stock to appreciate. Daniel also details Meta's future growth levers, including the rapid growth of WhatsApp revenue and the potential for $50 billion in annual revenue from selling excess compute capacity by 2030.

In the second half of the video, Daniel discusses the end of the "SAS apocalypse," noting that software stocks are rallying as the market realizes AI is a tailwind rather than a threat. Daniel analyzes the earnings of Viva Systems and Salesforce, arguing that their stock price jumps were driven more by multiple expansion from depressed levels than by a fundamental shift in growth. Daniel believes that fundamental investors who ignored the negative AI narrative were able to secure high-quality businesses at steep discounts.

Meta (META): Daniel maintains that Meta is one of the best buys in the market today, especially while it trades at a forward P/E ratio under 20. Daniel has been aggressively buying shares under $600, citing the company's high-quality AI models and massive cash flow optionality. Daniel believes the legal overhang is largely gone and that the stock remains significantly undervalued.
Viva Systems (VEEV): Daniel highlights that Viva Systems saw a 20% rally because its valuation became irrationally low at 11x enterprise value to free cash flow. Daniel notes that while growth is slightly decelerating, the business remains highly profitable with 43% operating cash flow margins. Daniel argues that the stock's recovery is a correction of overblown fears regarding AI disruption.
Salesforce (CRM): Daniel states that Salesforce's 25% rally was triggered by earnings that proved the business is stable despite not being "blowout" results. Daniel points out that Salesforce is growing at a steady 11% and is benefiting from a shift in investor perception. Daniel believes the market is finally acknowledging that Salesforce’s core business is resilient against AI competition.

Mentioned Stocks

META
Sentiment: BUYAction: BOUGHT

Reasoning: Daniel bought more Meta shares because Daniel believes the $18 billion settlement is non-material compared to Daniel's assessment of Meta's $130 billion cash flow. Daniel notes that Meta trades at a forward P/E under 20, which Daniel finds attractive given the potential for $50 billion in future compute revenue and the success of the Muse Spark AI model. Daniel considers any price under $600 to be a significant buying opportunity.

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CRM
Sentiment: BUYAction: RECOMMENDED

Reasoning: Daniel states that Salesforce's 25% rally demonstrates a shift in investor sentiment rather than a fundamental change in the business. Daniel observes that Salesforce's 11% growth is stable and that the market is beginning to realize AI will not disrupt the company's core operations. Daniel believes the stock's recovery is driven by the expansion of its valuation multiple as the narrative around software companies improves.

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VEEV
Sentiment: BUYAction: RECOMMENDED

Reasoning: Daniel identifies Viva Systems as a high-quality business that became extremely undervalued at 11x enterprise value to free cash flow during the recent market fear. Daniel explains that the 20% stock rally is a result of valuation multiples returning to historical averages as Daniel observes that AI is not disrupting the software sector as previously feared. Daniel remains bullish on the business fundamentals despite a slight deceleration in growth.

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