Investors consider buying top tech stocks Alphabet (GOOGL) and Meta Platforms (META) for growth

From Nasdaq: 2024-12-14 03:14:00

Investors are considering adding more exposure to the technology sector as the year comes to a close. Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) have outperformed the S&P 500 in the past five and 10 years, making them top tech stocks to buy in December for their network effects and financial prowess.

Alphabet’s Google Search and Meta’s social media apps benefit from network effects due to their large user bases, creating barriers for competitors. These companies also have a significant data advantage, allowing them to make strategic decisions based on valuable insights. Their strong financial positions enable aggressive investments in new initiatives like artificial intelligence.

Both Alphabet and Meta boast impressive financial metrics, with high operating margins and strong balance sheets. Their current valuations are reasonable, with forward P/E ratios lower than the tech-heavy Nasdaq-100 index. Analysts project solid earnings growth for both companies between 2023 and 2026, making them attractive buys for investors looking for growth opportunities in December.

For investors seeking lucrative opportunities, experts recommend considering “Double Down” stock recommendations for companies that are poised for growth. Past recommendations like Nvidia, Apple, and Netflix have delivered significant returns over the years. Don’t miss out on potential gains with these alerts for three promising companies.

Disclosure: Alphabet and Meta Platforms are recommended by The Motley Fool, and the author and clients have no positions in these stocks. Suzanne Frey of Alphabet and Randi Zuckerberg of Meta Platforms are members of The Motley Fool’s board of directors. The views expressed are the author’s and do not necessarily reflect those of Nasdaq, Inc.



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