From Nasdaq: 2024-05-02 20:28:09

In a comparison of Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META), Amazon emerges as the better investment option. Amazon has shown better performance, with rising revenue and strong earnings guidance, thanks to its successful implementation of AI technology. Meta Platforms, on the other hand, is increasing spending on AI, which may take time to translate into profits.

Amazon’s stock is trading at a discount with a bullish outlook, backed by strong financial results and cloud computing performance. Conversely, Meta Platforms’ stock is trading in line with its historical P/E ratio, with a neutral outlook due to increased AI spending and losses in its Reality Labs division. Investors remain cautious about Meta’s ability to turn AI investments into profits.

Investors favor Amazon over Meta Platforms based on valuation, financial performance, and successful AI implementation. Amazon’s stock is projected to have an upside potential of 18.65%, while Meta Platforms is expected to see an upswing of 20.2%. While both companies are part of the Magnificent Seven stocks, Amazon’s current performance and future prospects make it the more attractive investment option.



Read more at Nasdaq: AMZN vs. META: Which Magnificent Seven Stock Is Better?