Meta vs. Apple: A Financial Comparison of the Magnificent Seven
Adjectives can sometimes lose their impact, particularly in 2025 when assessing some of the largest global companies. Many are starting to question whether the stocks known as the “Magnificent Seven” truly live up to their name.
Despite not performing as strongly this year, these stocks still hold value for long-term investors. For instance, I believe that Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL) still have considerable potential for growth in the next decade and beyond.
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While I hold investments in both tech giants, my attention has shifted more toward one recently. Is Meta Platforms currently a better choice than Apple among the Magnificent Seven stocks?
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Comparative Growth and Performance
So far in 2025, investors seem to prefer Meta over Apple. Meta’s stock has bounced back significantly following an earlier decline and is now showing year-to-date growth. The catalyst for this rebound was the company’s positive first-quarter update.
Meta’s growth metrics are stronger than Apple’s; its revenue increased by 16% year-over-year in the first quarter to reach $42.3 billion, with profits rising by 35%. In contrast, Apple reported around a 5% year-over-year revenue and earnings growth in its latest quarter.
Looking ahead, Wall Street forecasts that Meta will experience revenue growth of over 13% in both 2025 and 2026. In comparison, analysts anticipate Apple’s revenue will grow by approximately 4% in 2025 and 6% in 2026.
However, the current stock valuations do not reflect these growth projections. Meta’s shares have a forward price-to-earnings (P/E) ratio of 23.8 and a price-to-earnings-to-growth (PEG) ratio of 1.98, based on analysts’ five-year growth estimates. Apple’s forward P/E ratio stands at 27.1, while its PEG ratio aligns with Meta’s assessment.
Future Considerations
Investing wisely requires more than just comparing numerical data; it’s about forecasting future performance based on potential uncertainties. How might Meta and Apple perform over the next year, five years, or even longer?
One significant concern for Apple is the impact of the Trump administration’s tariffs, which pose a more pressing threat than comparable issues for Meta. During their respective recent earnings calls, Apple’s management discussed tariffs, highlighting the uncertainty they introduce, while Meta’s leadership did not mention tariffs at all.
Apple also faces potential challenges from ongoing antitrust lawsuits against Alphabet‘s Google, which could threaten the $20 billion annual revenue it earns from Google being the default search engine on Safari.
For Meta, the primary question lies in whether its substantial investments in the metaverse will yield returns, and, if so, when. Initial successes in smart glasses might allow Meta to pioneer a rapidly growing market. Nevertheless, Apple is also developing smart glasses, targeting both augmented reality and standard versions.
Which Stock Is the Better Investment?
Despite the uncertainties surrounding both companies, both Meta and Apple have the potential to deliver solid long-term returns. While I favor both stocks, one stands out as a stronger investment at this time.
Meta’s growth trajectory appears significantly more favorable than Apple’s. This trend is likely to continue over the next few years. Meta’s vast user base across Facebook, Instagram, Messenger, and WhatsApp will probably continue to attract advertisers. Although I wouldn’t discount Apple’s capabilities in the smart glasses market, Meta is likely to maintain its position as a leader.
Investors purchasing Apple amid its current decline may find it a wise choice in the coming years. However, if you have to select just one of the Magnificent Seven stocks at this moment, I would recommend choosing Meta.
Is This the Right Time to Invest in Meta Platforms?
Before purchasing stock in Meta Platforms, consider the following:
The Motley Fool Stock Advisor analysts recently identified what they perceive as the 10 best stocks for investors right now, and surprisingly, Meta Platforms was not included. The stocks on this list could offer significant returns over the coming years.
For context, consider when Netflix was recommended on December 17, 2004; if $1,000 was invested then, it would be worth $614,911* now! Similarly, if Nvidia was purchased when it was recommended on April 15, 2005, that same $1,000 would be valued at $714,958*!
Notably, Stock Advisor achieved an average return of 907%, greatly outpacing the S&P 500’s return of 163%.
*Stock Advisor returns as of May 5, 2025
Suzanne Frey, an executive at Alphabet, and Randi Zuckerberg, former director of market development at Facebook and sister to Meta’s CEO, serve on The Motley Fool’s board. Keith Speights holds positions in Alphabet, Apple, and Meta Platforms, which The Motley Fool recommends. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
