A few years ago, you couldn’t even glance sideways at a media source without mention of the so-called “Magnificent Seven” stocks. While some of the shine has come off the group as of recently, they are still among the best stocks to watch on the market today due to their oversized market capitalizations. Keep in mind, while many have experienced some volatility in 2025, they remain some of the largest and most influential companies in the market.
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You could easily buy stock in all these companies in one fell swoop by investing in funds like the Vanguard Growth EFT. However, if you’re looking to cash in by owning stock in one of the seven, and are trying to decide between investing in like Alphabet Inc. (Google’s parent company) or Meta Platforms Inc. (the owner of Facebook and Instagram), here are some things that may sway your decision.
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Is Alphabet Stock or Meta Stock a Better Buy?
Tech behemoths Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOGL) are technically fairly similar: both businesses rule their respective industries by making excellent products, both initiated dividends for the first time this year and both make a killing generating enormous amounts of revenue through digital advertising.
When dissecting two companies of this size, it’s easy to sit on the fence. If you believe in the potential of the metaverse and are willing to take on higher risk for potentially higher rewards, Meta might be the better choice. If you prefer a more diversified company with steady revenue from various sources, Alphabet could be a more stable investment.
However, while both companies have vast growth potential and are poised to continue to change the world as we know it from a technological perspective, they differ in the details. Evaluating the direction in which each company may move in the future, many dictate where you want to place your hard-earned.
Trading in internet search engines, cloud infrastructure, entertainment, media, advertising, consumer electronics and mobile operating systems, Alphabet’s main sources of income are YouTube and Google, the world’s leaders in internet searching and online video content searching, respectively.
Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark, feels her brother’s company is in a better position than Alphabet to take advantage of the forthcoming AI frontier. Providing the world with social media apps like Facebook, Instagram and WhatsApp, Meta Platform’s core earnings drivers are in advertising, the metaverse, consumer electronics and social media. Meta isn’t worth as much as Alphabet, but it’s still got a very well-lined purse.
However, with users comes competition, and if more people — especially legions of young influential people — spend more time on apps like TikTok, it may come at the expense of people spending time on Facebook or Instagram. Meta will always be fighting for user time and advertising money.
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Final Take To GO: Which Should You Invest In?
The bottom line is that AI has already dug its claws deeply into the roots of both platforms. The companies’ products and services now all heavily depend on artificial intelligence, as do the users and advertisers. AI-related expenditures and investments seem justified when they yield massive profits, so you might be surprised to see what these two stocks currently trade at.
Even if you are a hedge bettor, barring a major economic downturn or recession that seems to loom around every corner, both are sound investments for potential long-term gains if you can ride out the storm. However, thinking ahead, Alphabet is a stronger buy of the two. It is cheaper, has healthier consensus upsides and is getting all its sources homed in on the AI revolution better than many of its Magnificent Seven rivals, including Meta.
David Nadelle contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Meta vs. Alphabet Stock: Which Is a Better Investment?
