Market analysts predict that Alphabet and Meta Platforms will outperform the S&P 500 in 2025

From Nasdaq: 2024-12-18 04:02:00

The S&P 500 is up 28% this year, trading at a high P/E ratio of 27.8. Technology stocks, especially those in AI, are leading the charge, with potential to beat the S&P in 2025. Alphabet and Meta Platforms stand out as valuable options in the market.

Alphabet, parent of Google, faces threats to its advertising revenue dominance from AI chatbots. Developing AI features like Gemini chatbot and AI Overviews are key to maintaining market share and driving revenue growth in 2025.

Meta Platforms, despite an 80% stock gain, remains cheaper than other tech giants. AI-powered recommendations on Facebook and Instagram drive user engagement and ad revenue. Meta AI, run on Llama models, is poised for growth with opportunities for monetization, making Meta a strong contender to beat the S&P 500 in 2025.



Read more at Nasdaq: 2 Spectacular Artificial Intelligence (AI) Stocks Primed to Beat the S&P 500 in 2025