In the ever-evolving landscape of the stock market, two tech giants, Meta Platforms (NASDAQ: META) and Amazon (NASDAQ: AMZN), have captured the attention of investors due to their significant market positions and growth potential. Collectively referred to as part of the “Magnificent Seven,” these companies continue to show promise for long-term investors.
Meta Platforms: A Closer Look
As of November 2025, Meta Platforms is experiencing a noteworthy decline, down 20% from its all-time high. This drop is attributed to investor concerns over the company’s spending on projects that may not yield immediate returns. In the last quarter, Meta’s Reality Labs division, which is heavily focused on metaverse development, reported a staggering operating loss of $4.4 billion against revenues of $470 million. Furthermore, investments in its Superintelligence Labs for artificial intelligence (AI) are on the rise, causing some skepticism among stakeholders.
Despite these challenges, Meta Platforms remains a strong player in the advertising market, with over 3.5 billion daily interactions across its platforms, including Facebook. The company boasts a robust operating margin of 40%, even after substantial investments in AI and metaverse initiatives. Notably, Meta returned $4.5 billion to shareholders in Q3 through share repurchases and dividends, showcasing its commitment to rewarding investors.
Currently, the stock is trading at a valuation of 24 times expected earnings, making it the most affordable member of the Magnificent Seven. Given the company’s strong core business and potential for growth, many analysts consider Meta Platforms a compelling investment opportunity.
Amazon: The Cloud Powerhouse
On the other hand, Amazon’s business model is multifaceted, with its e-commerce segment generating over $100 billion in quarterly sales. However, the spotlight often shines on Amazon Web Services (AWS), which accounts for two-thirds of the company’s operating profits. The outlook for AWS is exceptionally promising, with revenues increasing by 20% in the most recent quarter.
As businesses globally transition to cloud solutions, AWS is positioned to capitalize on this trend. Amazon reported nearly $200 billion in performance obligations related to AWS, reflecting a 22% increase from the previous year. This indicates robust future revenue growth, suggesting that Amazon will continue to post strong operating profits.
While both Meta Platforms and Amazon have exhibited impressive gains over the years, the key takeaway is that they are still regarded as potential long-term investments. With Wall Street analysts predicting at least a 20% increase in stock prices for both companies over the next year, investors may want to consider these tech titans for their portfolios.
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