Meta Platforms (NASDAQ: META) may be the safest tech stock during tariff turmoil

From Nasdaq: 2025-04-16 04:10:00

President Donald Trump’s import tariffs are causing volatility in the market, especially for technology stocks like the “Magnificent Seven.” These tech giants rely heavily on international production, making them vulnerable to tariff news. While Trump exempted electronic equipment from tariffs temporarily, the uncertainty remains for these companies.

Trump’s recent tariffs, some exceeding 20%, raised concerns for tech companies that rely on China for production. However, exemptions for electronics offer some relief. Social media giant Meta Platforms (NASDAQ: META) may be the least vulnerable among the Magnificent Seven due to its revenue model focused on advertising, not physical products subject to tariffs.

Meta Platforms’ strength in advertising across apps like Facebook and Instagram, with over 3.3 billion daily users, shields it from immediate tariff impacts. While the company dabbles in AI and VR, potential price hikes from suppliers could affect growth. At a valuation of 21 times forward earnings estimates, Meta presents a stable investment option during tariff turmoil.

Investors should consider Meta Platforms for its long-term growth potential, driven by its strong advertising revenue model and advancements in AI. With a history of market-beating returns, Meta’s stock could offer significant gains in the coming years. Join Stock Advisor for access to the latest top 10 stock recommendations, potentially leading to substantial returns.

The Motley Fool has a disclosure policy. The author may have positions in some companies mentioned. The views expressed are the author’s own and may not align with Nasdaq, Inc.’s opinions.



Read more at Nasdaq: Prediction: This Stock Will Be the Safest of the “Magnificent Seven” During Tariff Turmoil