Consider buying shares in large-cap tech leaders Meta (META) and Amazon (AMZN), which are viewed as undervalued with forward P/E ratios in the 20s despite their strong growth. A significant buying opportunity may exist in financial data firms Moody's (MCO) and S&P Global (SPGI), as their stocks have fallen

Meta (META)

• Prominent investor Bill Ackman made a significant new investment in Meta, making it his fifth-largest holding with an 11.37% weighting in his fund as of Q4 2025.
• The podcast host is also very bullish on Meta, stating it is his third-largest holding and that he will continue to buy more if the price drops further.
• The investment thesis is described as simple and powerful: Meta is a cheap stock, it's growing fast, and it has a very wide moat.
• Valuation: The company is considered inexpensive, trading at a 22 forward P/E ratio. This includes the heavy spending on its Reality Labs division. If you only look at the core business (Family of Apps), the P/E ratio is an even lower 18.
• Risk Factor: The main concern for investors is the high capital expenditure (CapEx) on projects like the Metaverse and AI.
  • The host argues this is not a true risk but a deliberate capital allocation decision by management. The spending is driven by opportunity and can be reversed at any time. It is not a sign of competitive pressure.

Takeaways

• The current valuation is seen as attractive, especially given the company's growth rate and dominant market position.
• The high spending on AI and Reality Labs is viewed by the host as a strategic investment for future growth, not a waste of money. Investors who share this long-term view may see the current price as an opportunity.

Amazon (AMZN)

• Bill Ackman sold a large portion of his Google stock to buy Amazon in Q4 2025, making it a new, significant position for his fund.
• In contrast, Warren Buffett's Berkshire Hathaway sold 77.2% of its Amazon position in the same quarter.
• The podcast host is very bullish on Amazon and sides with Bill Ackman, viewing the company as one of the best buys in big tech today.
• Investment Thesis: Amazon is a blue-chip company with a wide moat, predictable growth, and a cash-generative core business that is trading at an artificially low valuation.
• Valuation: Amazon trades at a 26 forward P/E ratio. This is considered low, especially when compared to slower-growing retailers like Walmart.
• Risk Factor: Similar to Meta, the primary concern is high CapEx spending.
  • The host dismisses this concern, stating the spending is necessary to meet overwhelming customer demand for its cloud services (AWS). He compares it to a successful restaurant needing to open new locations to serve all its customers.

Takeaways

• A stark difference of opinion exists between major investors, with Ackman buying and Berkshire selling.
• The host believes the market is overly fearful of Amazon's spending, creating a valuation disconnect. For example, Amazon is growing 3-4 times faster than Walmart (WMT) but trades at nearly half the valuation (26 P/E for AMZN vs. 43 P/E for WMT).
• Investors who believe in the long-term growth of cloud computing and e-commerce may find Amazon's current valuation compelling.

Google (GOOGL)

• Bill Ackman significantly reduced his Google holding by 87% in Q4 2025.
• Reasoning for the sale: The stock doubled in price as fears about ChatGPT and antitrust issues subsided. The valuation expanded from a P/E in the low 20s to nearly 30, so Ackman was taking profits.
• Despite the large sale, Google remains one of Ackman's top four positions, making up over 10% of his portfolio. This indicates he still sees it as a great company, just not at a 30% portfolio weight.
• The host believes Ackman may have sold a bit early, as Google's stock has performed better than Amazon's since the end of 2025 (-3.5% for Google vs. -10% for Amazon).

Takeaways

• This was a strategic trim to lock in substantial gains after a massive run-up in the stock price, not a complete abandonment of the company.
• The move highlights the importance of valuation. As a company's stock price and P/E ratio increase, even bullish investors may choose to reduce their position size.

Moody's (MCO) & S&P Global (SPGI)

• These financial data and ratings companies have seen their stock prices fall significantly due to market fears about disruption from AI. S&P Global is down 19% from when super-investor Chris Hohn was buying in Q4 2025.
• The podcast host is very bullish on both companies and sees the sell-off as a major buying opportunity. He plans to buy additional shares of both MCO and SPGI.
• Moody's recently "crushed" its earnings report, and its CEO delivered a powerful defense of the company's moat against AI.
• Moody's Moat vs. AI:
  • Proprietary Data: Much of their data is not public and is protected by decades of commercial agreements and IP rights.
  • Expertise: They have deep semantic, legal, and regulatory expertise that AI models lack.
  • Trust: They provide "decision-grade outputs" that are accurate, explainable, and defensible, which is something institutions require and current chatbots cannot provide.

Takeaways

• The market's fear of AI may be creating an opportunity in high-quality data companies like Moody's and S&P Global.
• The argument is that these companies provide a curated, trusted context layer on top of raw data that AI cannot replicate. Their value is in the governance, history, and proprietary nature of their information.
• Investors who believe this moat is durable could see the recent price drops as an attractive entry point.

Other Notable Mentions

• Microsoft (MSFT): Was the most frequently bought stock by super investors in Q4 2025. The price has since dropped 17%, meaning it can be purchased today at a significant discount to what those top investors were paying.

• Intuit (INTU): The stock is down nearly 40% year-to-date. Super-investor Devkant Dasaria trimmed his position by 15% in Q4 2025, but that was at much higher prices. The host speculates that at the current valuation (a 15 forward P/E), Dasaria might be buying, not selling.

• DoorDash (DASH): The company continues to post incredible growth, with revenue up 37% and orders up 32% year-over-year. The investment thesis is based on the powerful and enduring human desire for convenience.

• Booking Holdings (BKNG): The stock dropped 7% after earnings, despite strong results (revenue up 16%). The drop was attributed to guidance for slightly slower "low double digit" revenue growth ahead. The host remains bullish and considers it a great company.