Key Points
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Microsoft (NASDAQ: MSFT) is down 23% as of June, while Meta Platforms (NASDAQ: META) is down 15% year-to-date.
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Microsoft’s AI business grew by 123% in its latest quarter, contributing to an overall growth rate of 18%.
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Meta Platforms reported a 33% revenue growth in Q1 2023, with a price-to-earnings ratio of 21.
Microsoft and Meta Platforms, both significant players in the tech industry, have faced considerable stock declines this year, with Microsoft performing the worst among the “Magnificent Seven.” Despite these challenges, both companies are leveraging artificial intelligence for growth.
Microsoft’s core business remains strong due to its essential software products, while Meta continues to expand its AI offerings across its platforms. While Microsoft trades at 23 times its earnings versus the S&P 500’s average of 25, Meta presents a slightly cheaper option at 21 times earnings, but uncertainty around social media impacts investor sentiment more heavily.
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