From Nasdaq:

Tech giants Amazon (AMZN) and Meta Platforms (META) saw significant stock growth in 2023, with Amazon gaining 80.9% and Meta Platforms climbing 194.1%. Both companies benefited from the resilient economy, strategic investments in artificial intelligence, and efforts to streamline costs. However, the positive momentum continued into 2024, with Meta gaining 33.4% year-to-date and Amazon appreciating by 11.5% during the same period.

Amazon recorded a revenue of $574.8 billion in 2023, up by 12% year-over-year, with operating income tripling to $36.9 billion. Its free cash flow improved to an inflow of $36.8 billion for the trailing twelve months, compared with an outflow of $11.6 billion in the prior year. These positive developments bolstered Amazon’s share price, and the company continues to focus on cost reduction and faster delivery, which is expected to boost its retail sales and margins in 2024.

Meta Platforms benefited from its dominance in the social media space, driving engagement and monetizing user activity. The company saw a remarkable 69% year-over-year increase in net income in 2023, alongside the initiation of dividend payments. Furthermore, Meta Platforms made substantial AI investments, leaving the company poised to accelerate growth in subsequent quarters.

While analysts are bullish on Meta stock, with 39 out of 44 analysts recommending a “Strong Buy,” the stock has already gained significantly. Analysts’ average price target is $500.98, implying a limited 6% upside potential from current levels. On the other hand, Amazon is well-positioned to deliver stellar growth in 2024 and benefit from its AI-led initiatives, as reflected in analysts’ recommendations, with 41 analysts having a “Strong Buy” recommendation.



Read more: Can Mega-Cap Stocks Amazon and Meta Repeat Last Year’s Gains in 2024?