Two Unique Growth Stocks to Consider in 2025

As we look ahead to 2025, investors are seeking undervalued growth stocks with strong long-term prospects. Two companies that stand out in this regard are Uber (UBER) and Meta Platforms (META). Both companies have unique characteristics and growth prospects that make them attractive investments for long-term investors.



Uber (UBER)

Uber is the largest ride-sharing company outside of China, with a strong network effect due to its large customer base and number of drivers. Its growing subscription offering, Uber One, provides discounted rides, food, and beverages, further strengthening its network effect. Uber expects gross bookings to climb to at least $165 billion by 2024, indicating significant growth potential. Its gross margin is expected to expand over time, driven by the network effect and increasing Uber One subscriptions. Although it may invest in new areas that affect bottom-line profits, this is characteristic of a growth company.



Meta Platforms (META)

Meta Platforms is the largest social media company in the world, with almost 3 billion people using at least one of its apps daily. Despite its size and growing competition, Meta continues to expand its user base, indicating a strong network effect. Meta's earnings have been affected by changes in Apple's iOS data-sharing policies and an uncertain economic environment, leading to reduced ad spending on its platforms. However, the long-term outlook favors Meta, as digital advertising is set to continue taking a growing share of marketers' budgets. As Meta moves past these hurdles, it should resume strong revenue growth and produce an expanding operating margin, leading the stock to recover toward the enterprise value/EBITDA multiple of its peers around 13x.



In conclusion, Uber and Meta Platforms are two unique growth stocks with strong long-term prospects. Their unique business models, competitive advantages, and growth prospects make them attractive investments for long-term investors seeking undervalued growth stocks. However, investors should be aware of the risks associated with these stocks, such as market risk, company-specific risk, valuation risk, liquidity risk, and regulatory risk. By conducting thorough research, diversifying their portfolio, and maintaining a long-term perspective, investors can better manage these risks and improve their chances of achieving long-term success.