Veteran Pro Stock Picker Is Bullish on Meta Platforms, Inc. (META), Bearish on Tesla, Inc. (TSLA) and Apple Inc. (AAPL)

Meta Platforms, Inc. (META)’s outlook is favorable, while Tesla (TSLA) and Apple (AAPL) are facing tough challenges, David Dietze, the Chief Investment Strategist of Dietze Wealth Management told Schwab Network yesterday.

Dietze: Meta Is Using AI Very Effectively

Meta Platforms, Inc. (META) CEO Mark Zuckerberg is effectively using AI to enhance the experience of the firm’s advertisers and provide “more curated content” to its platforms, Dietze said.

Meta is poised to reach “the next level,” while Zuckerberg is keeping away from politics, the strategist said approvingly.

Photo by Alexander Shatov on Unsplash

Musk Is Spread Too Thin, Dietze Says

Although “no one is smarter than Elon Musk,” the CEO’s extensive involvement with the Trump administration is likely preventing him from spending as much time on his companies, including Tesla, Inc. (TSLA), as he used to, according to Dietze.

Further, Chinese EV companies “are making huge progress,” according to the strategist. And while Tesla, Inc. (TSLA) is working hard on autonomous vehicles, other companies, including Alphabet’s (GOOG,GOOGL) Waymo, appear to be making more progress on that front, Dietze suggested.

Dietze: The Valuation of Apple Inc. (AAPL) Stock Is High

The price-earnings ratio of AAPL stock “is close to 30 times,” almost double the level at which Warren Buffett’s firm bought a great deal of the shares, Dietze stated.

What’s more, China is a large market for Apple Inc. (AAPL), and the tech giant could get hurt if China decides to retaliate against it as a means of responding to the Trump administration’s tariffs, the strategist warned.

“People love their iPhones, but they’re not buying them every six months,” Dietze added.

 While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as META but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.