Key Points
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Meta Platforms is outperforming competitors in AI monetization but remains undervalued.
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Investors are advised to consider Meta as a buy, while Tesla is seen as a risky choice due to its declining EV business.
As of market close on February 17, key tech stocks including Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) are all down significantly this year, with the collective “Magnificent Seven” stocks being vital drivers of the S&P 500’s growth.
In 2025, Amazon forecasts capital expenditures (capex) of $200 billion, a 55.9% increase year-over-year. Meanwhile, Microsoft spent $37.5 billion on capex in its latest quarter. Meta, with a market capitalization of $1.63 trillion, reported over $60 billion in net income, contrasting sharply with Tesla’s $1.55 trillion market cap and less than $4 billion net income.
