Amazon and Meta Platforms have emerged as top picks for internet stocks in 2025, according to analyst Shweta Khajuria. She believes that sound consumer demand, lower interest rates, and low unemployment will support the overall economy. Amazon, the world leader in e-commerce and cloud computing, reported $158.9 billion in revenue for Q3 2024, up 11% from the previous year.
The company’s cloud computing service, AWS, saw the highest growth at 19% year-over-year. Amazon is also leveraging AI to enhance its retail and cloud services, introducing an AI-powered shopping assistant and integrating AI capabilities into its AWS platform. Meta Platforms, the parent company of Facebook, Instagram, Messenger, and WhatsApp, reached 3.29 billion daily active users in September 2024.
The company’s total revenue grew 19% year-over-year to $40.59 billion in Q3 2024. Meta has adapted to changes in the digital landscape by developing its own threads-based app, Threads, which has reached 200 million active users since its launch in July 2023. Looking ahead to 2025, analysts are comparing the potential performance of Meta Platforms, Snap, and Pinterest.
Meta remains the dominant force in social media, with nearly 3.3 billion daily active users across its apps.
Analysts’ top internet stocks of 2025
The company is heavily investing in AI technology to enhance user engagement and ad effectiveness.
Pinterest, with 537 million monthly active users, has focused on monetization improvements and partnerships with major brands. However, the company’s international monetization lags behind its U.S. and Canada performance. Snap, the parent company of Snapchat, boasts 443 million active users and plans to roll out a redesigned app in early 2025 to enhance user experience and boost engagement.
Analysts believe that Snap might have the highest potential for outperformance in 2025, especially if TikTok faces regulatory hurdles. In a broader outlook for internet stocks in 2025, analysts remain optimistic about the sector, noting opportunities in mega-cap stocks such as Amazon, Meta Platforms, Uber, and Chewy. Potential upside is expected to be driven by product catalysts, healthy macro conditions, and attractive valuations.
Amazon’s diversified growth drivers, including retail margins, AWS revenue growth, and international profitability, make it a top pick. Meta Platforms’ monetization opportunities and potential EPS upside from a TikTok divestiture further solidify its position. Uber is seen as a controversial pick due to its undervaluation relative to peers and upside potential in its Mobility and Delivery segments.
Chewy’s subscription-like model and international expansion are expected to fuel its growth over the next two years.
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
