Two Stocks to Watch: Amazon and Meta Platforms Overtaking Microsoft in the Next Few Years

Nvidia recently surpassed Microsoft as the largest company in the world, but two stocks are predicted to outperform Microsoft in the next five years. Amazon is building out a massive AI platform and has other growing businesses, while Meta has a huge user base and a long growth runway as users engage more online. Amazon's cloud division, AWS, is the leading global cloud services provider, and the company is investing over $100 billion in building out its AI business. Meta's long growth runway is also due to its large user base and increasing online engagement.

Amazon (AMZN) and Meta (META) are two companies that have caught the attention of investors due to their potential for significant growth over the next five years. Both companies have unique strengths and are poised to outperform Microsoft (MSFT) in the coming years.

Amazon, the e-commerce giant, is building out a massive AI platform and has other growing businesses. Its cloud division, Amazon Web Services (AWS), is the leading global cloud services provider. The company is investing over $100 billion in building out its AI business, which includes AI-driven cloud services, AI-powered logistics, and personalized recommendations. Additionally, Amazon's Prime membership program continues to grow, with strong retention rates and room for further price increases. According to JPMorgan and Truist, Amazon's Prime membership fee is expected to increase in 2026, generating significant additional revenue [1].

Meta, on the other hand, has a huge user base and a long growth runway as users engage more online. The company's long-term growth potential is driven by its large user base and increasing online engagement. Meta's long-term growth runway is also due to its large user base and increasing online engagement. The company is investing heavily in AI and virtual reality technologies, which are expected to drive growth in the coming years [2].

While Microsoft has been a dominant force in the tech industry, Amazon and Meta have the potential to outperform it in the next five years. Amazon's diversified revenue streams and strategic pricing power position it to outperform pure-play AI stocks. Meta's large user base and increasing online engagement provide a strong foundation for growth. Both companies have strong fundamentals and are well-positioned to capitalize on the growth opportunities in their respective markets.

Investors should keep an eye on these two companies as they continue to grow and innovate. With strong fundamentals and growth potential, Amazon and Meta are worth considering for long-term investment portfolios.

References:
[1] https://www.ainvest.com/news/amazon-prime-pricing-power-undervalued-ai-assets-signal-300-run-2507/
[2] https://finance.yahoo.com/news/nvidia-meta-google-microsoft-and-other-giant-tech-stocks-have-one-important-challenge-coming-up-131344418.html