Wall Street analysts have identified Amazon (AMZN, Financial) and Meta (META) as the top stock choices for 2025 among the "Magnificent Seven" tech giants. Bernstein's Mark Shmulik and JPMorgan's Doug Anmuth both emphasize their potential. Amazon's stock has surged 52% this year, exceeding the S&P 500's 27% rise and the Nasdaq's 34% gain. Shmulik upgraded Amazon's price target from $235 to $265, citing AWS's growing operating profits driven by AI investments. AWS reported a 19% year-over-year sales increase, reaching $27.5 billion.
Anmuth sees Amazon as 2025's best stock, raising its target to $280 based on AWS and advertising revenue prospects. He also highlights Meta's growth potential, raising its price target from $660 to $725 due to strong revenue growth, AI innovation, and possible favorable competition if the U.S. bans TikTok. Meta's stock has risen 75% this year, with a forward PE ratio of 24.5, compared to Amazon's 37.3.
