In 1996, Warrenba Fett was written as follows. “The goal as an investor is to buy a part of a business that makes it easy to be substantially reliable in 5, 10, 20 years later, at a reasonable price.” In other words, if shares with compelling growth prospects are traded at a wise price, the results will be a simple investment.
Amazon (Amzn 1.30 %) And meta platform (Meta 0.32 %) Complace those conditions. In fact, JPMORGAN CHASE analyst chose both shares as a top pick in 2025. Investors can buy each company’s share for less than $ 1,000. The reasons why Amazon and Meta platforms are smart long -term investments are as follows:
1. Amazon
Amazon has a strong presence in e -commerce, adtech, and cloud computing. It runs the largest online market outside of China, is the third largest digital advertiser and runs the largest public cloud in terms of sales. Few companies are more exposed to investing very many major secular trends.
Importantly, Morgan Stanley’s Brian Nowak has recently selected Amazon as a top stock pick in 2025, and is a underestimated leader of artificial intelligence (AI) through cloud computing and retail as a whole. In fact, the company uses machine learning to optimize products, inventory, and logistics. In addition, we adopt the background generated AI to support programmers and customer service agents.
Amazon Web Services (AWS), on the other hand, monitts AI with all layers (hardware, software, and services) on the cloud platform. Custom AI chips (training) and inference (recommended) for training provide inexpensive alternatives. NVIDIA graphics Processing unit (GPU). Amazon Q software automates coding and business intelligence workflows. Also, the base allows the client to develop a generated AI application.
Amazon reports the fourth quarter financial results on Thursday, February 6. Wall Street is expected to increase profits by 49 % and increase 21 % in 2025. However, Amazon has an average of 39 % of consensus revenue estimates in the last six quarters, and the patterns may continue as investment in AI’s revenue and operational efficiency. As a result, Amazon is a simple shopping.
2. Meta platform
Meta Platforms has four of the seven most popular social media platforms on the earth. This is an important competitive advantage that can collect data and target advertising content. As a result, Meta Platforms is the second largest Addech company in the world after Alphabet’s Google, and is expected to gain share until 2026, according to Emarketer.
Meta invests a lot of artificial intelligence hardware and software, and in the fourth quarter revenue call, CEO’s Mark Zuckerberg discussed the return. The company uses a custom MTIA (metalling accelerator) chip to handle advertising recommendations workloads. Eventually, we plan to use custom silicon for workload training.
In addition, Meta AI has about 600 million active users in December and is the most popular conversation assistant in the world. Zuckerberg expects to exceed 1 billion in 2025. “Once the service reaches such a scale, we usually develop a durable long -term advantage,” he told analysts. Zuckerberg also expects the open source lama model to be the “most advanced and widely used AI model” in 2025.
CFO Susan Li states that META’s capital spending can reach $ 65 billion in 2025, increasing by $ 39 billion in 2024. The expenditure was “promoted by investment that supports both generated AI and core businesses.” It is good news for NVIDIA, which triggered the confusion of Deep Shek, but it is good news for meta. Portfolio manager Dan Nile has recently told CNBC that Meta has used AI better than other “magnificent seven” companies.
Wall Street expects meta revenue to increase by 6 % in 2025. The consensus makes it more likely to look like a 29x revenue, but analysts hope to revise the estimate throughout the year. Digital advertising is expected to increase 11 % in 2025, and Meta has lost consensus estimates with an average of 13 % in the last six quarters. Meta is a simple shopping, as the upward revision of profits tends to promote price rise.
JPMorgan Chase is an advertiser for Motley Fool Money. SUZANNE FREY, an executive of Alphabet, is a member of the Motley Fool’s Board of Directors. John Mackey, a former CEO of Amazon subsidiary WHOLE FOODS MARKET, is a member of the Motley Fool’s Board of Directors. Randi Zuckerberg, a former director of market development, Facebook spokeswoman, and sister of Mark Zuckerberg, the CEO of Meta Platform, is a member of the Motley Fool’s Board of Directors. TREVOR JENNEWINE is the role of Amazon and NVIDIA. Motley Fool has a position in Alphabet, Amazon, JPMORGAN CHASE, Meta Platforms, and NVIDIA. Motley fools have a disclosure policy.
