This article discusses the competitive landscape between Meta Platforms and Amazon, two pivotal players in the Magnificent 7 stocks. While Amazon, valued at $2.42 trillion, has consistently maintained its status as the more valuable company since Meta's public debut, there are signs that Meta's high-margin business model and focus on social media could lead to significant growth in the next few years. The article argues that if Meta's earnings growth continues while Amazon's slows, the valuation gap of approximately $860 billion may narrow, potentially allowing Meta to outperform Amazon in market capitalization.
Meta's high-margin operating model and focus on social media could lead to higher growth than Amazon in the coming years, potentially closing the valuation gap.
Amazon's valuation remains higher due to its extensive e-commerce, cloud infrastructure, and logistics capabilities, but Meta's earnings growth may gain traction.
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