AI not yet the 'lift' for Meta that the Street was expecting, says Deepwater's Gene Munster

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, let's bring in Fast Money's friend Jean,

deepwater

monster Asset Management, hey Jean, what's your take on

meta

so far? I know the call is ongoing and that's where we're going to get some more important nuances, right? about Courtney and I think Tim, your comment about efficiency or leverage, uh, operating leverage is appropriate given that I think the piece that stood out to me about Zuckerberg's initial comments is that he's just getting started with them right now. , but it was bad news related to the amount of investment they will have to make in X cash and energy to build Ai and said: uh, use the words that I want to mention specifically so that investors know that there will be a longer investment period before that we realize. the full potential of AI U, this reminds me of things Amazon has done in the past, it just reminds me that there will be periods of greater investment.

I read that, as probably for several quarters of this investment phase, they obviously just updated the full-year capex guidance, but don't expect that you're reading between the lines here a big boost or maybe a breakout in terms of AI , one more piece. Courtney is beyond that bad news to say that she is optimistic about Ai. and potential in meta is an understatement, she mentioned five different opportunities that they have within Ai and I just want to highlight one of them, she talked about llama and building a large business at scale. I still believe they are going to build an AWS. flame based type of business in the next few years, once they get to the H scale, investors definitely seem to be picking up these several quarters of investing because the stock is now falling another leg lower here, Jean is down about 19%.

I know, obviously, um, you. I know there is a lot of play here with China advertising from China. Have we heard anything about that yet on the call? What do you want to hear when it comes to that area of ​​the business? They haven't mentioned it until now, I mean. My take on it is that I think some of the benefits that you're seeing are a benefit of AI, certainly, but it's still not a huge benefit, but some of that benefit, of course, has been muted in the guidance for June , if it wasn't for the impact of Teemu, uh, going back, they probably would have been guided up slightly if people had lowered it by about a percentage and a half, so I think, you know, these are these tough teu compositions.

They are going to continue in the September and December quarter, so there will be another headwind. I think it's easy to wrap around the vortex of these headwinds, but ultimately at the beginning of the comments you let go. the 3.2 billion users, um, that's the same as Zuckerberg left off and I think it's appropriate to start with that 7% year-over-year increase versus 8% year-over-year in December, it's a really tough number. to grow, anything above 1% is a profit, they continue to grow. That base, they said was particularly strong in the US, I think stocks will continue to go up because these AI benefits are a function of time before they start.

Well, Jean clearly Mark Zuckerberg is a fan of quick money so I want to give Mark a shout out to the gang but you know it's interesting because if the quarter alone I think was wonderful, it's down 18% now and I didn't think this out potentially. it could happen, but we're looking at levels, you know the previous all-time high was reached in the stock. I think in August 2021, around 385, that should be great support, so I guess my question to you is what Karen mentioned earlier, I mean, at some point. period, this is getting a little absurd in terms of the magnitude of the settlement.

I thought if I had been given the guidance and commentary that Zuckerberg talked about this investment phase and then the acceleration afterward, he would have done it. I assumed that the stock would have been down 5-10% and this is one standard deviation of that and I think it speaks to this underlying fear in tech investors that the part will end up with the echo of the year 2000 if they were not investing, then they know all about those lessons learned and people just don't want to stay uh and this, if it ends up being musical chairs, it won't be that AI is real, I think investors should give it a rest.

I'm sure, but this is a classic overreaction, just given that I think a lot and it underlines the concern that investors have about this AI opportunity.