As we enter 2025, the FAANG stocks—Meta Platforms (META), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOGL)—remain crucial players in driving the tech sector forward. After a strong performance in 2024, these companies are expected to continue shaping the market. Let’s dive into their performance in 2024 and explore the potential for growth in 2025.
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Meta Platforms
Meta Platforms experienced significant growth in 2024, with its stock rising by 72% over the past year, driven by advancements in artificial intelligence (AI) and ongoing investments in the metaverse through its Reality Labs division.
Looking ahead to 2025, Meta has big plans in store. The company is set to release updated Ray-Ban smart glasses with AI features and small displays. It will also introduce ads on its Threads app and increase production of mixed reality headsets like the Quest 3S in Vietnam. However, Meta will continue to face challenges from growing competition and regulatory scrutiny in the metaverse space.
Overall, META has a Strong Buy consensus rating based on 38 Buys, three Holds, and zero Sells assigned in the last three months. The analysts’ average price target on Meta stock of $675.92 implies a 14% potential upside from the current level.
Apple Inc.
Apple’s 2024 performance was nothing short of remarkable, with its market capitalization nearing $4 trillion and its stock surging by 36% over the past year, reflecting robust investor confidence. The iPhone 15 and 15 Pro series, coupled with strategic expansion into emerging markets, were key growth drivers.
In 2025, Apple aims to maintain its momentum by introducing new MacBook Air models featuring M4 chips and AirPods with health-tracking features like body temperature and heart rate sensors. Additionally, Apple is reportedly developing a smart doorbell with facial recognition technology as part of its smart home offerings. These product launches are designed to enhance Apple’s ecosystem and reinforce its position in the tech industry.
Overall, Apple has a Moderate Buy consensus rating based on 16 Buys and six Holds, and two Sells assigned in the last three months. The analysts’ average price target on Apple stock of $248.08 implies a 1.63% downside potential from the current level.
Amazon.com Inc.
Amazon maintained its strong growth momentum in 2024, with its stock rising by 48% over the year, fueled by solid demand in e-commerce and cloud computing.
In 2025, Amazon is expected to focus on AI-powered personalization for its retail customers and expand its footprint in international markets. For instance, Amazon is set to release the Nova Premier AI model in early 2025, expanding its AI capabilities. Also, the company plans to enhance Prime Video with exclusive content and sports streaming rights, aiming to retain and grow its subscriber base. Despite its success, Amazon faces challenges like regulatory scrutiny over labor practices and antitrust issues.
Overall, Amazon has a Strong Buy consensus rating based on 42 Buys and one Sell assigned in the last three months. The shares are currently priced at $221.30, and their $248.85 average price target suggests a one-year increase of 12%.
Netflix Inc.
Netflix had a transformative year in 2024, with its stock rising by 92% over the year, as the company successfully expanded its ad-supported subscription tier. This move attracted price-sensitive consumers and drove an increase in active users.
Looking to 2025, Netflix plans to focus on interactive content and gaming to give subscribers more ways to engage. For instance, a sequel to the 1996 comedy “Happy Gilmore,” titled “Happy Gilmore 2,” is scheduled for release in 2025, featuring returning cast members and new additions. Furthermore, Netflix is expanding its live sports offerings by becoming the exclusive home of WWE ‘Raw’ in the U.S., Canada, the UK, and Latin America starting in January 2025. These initiatives aim to diversify Netflix’s content portfolio and attract a broader audience.
Overall, Netflix has a Moderate Buy consensus rating based on 19 Buys, 10 Holds, and one Sell assigned in the last three months. The analysts’ average price target on NFLX stock of $901.74 implies a 0.15% upside potential from the current level.
Alphabet Inc.
Alphabet had a strong year in 2024, with its stock price reaching $191.24, driven by its leadership in digital advertising and innovation in AI. The company’s Google Cloud division continues to grow, fueled by the increasing adoption of AI and machine learning tools by businesses worldwide.
In 2025, Alphabet is expected to focus on expanding its AI capabilities, particularly in autonomous vehicles and enhancing Google Cloud’s AI offerings. For instance, the company is set to release the Gemini 2.0 AI model in January 2025, offering improved performance and faster response times. Alphabet is working with HP to launch Project Starline, an XR video conferencing tool that shows co-workers in 3D for more natural conversations. These efforts aim to boost Alphabet’s role in tech and offer new solutions to users.
Overall, Alphabet has a Strong Buy consensus rating based on 23 Buys and six Holds assigned in the last three months. The analysts’ average price target on GOOGL stock of $212.19 implies a 10.95% upside potential from the current level.
See more GOOGL analyst ratings
Challenges for FAANG Stocks Remain in 2025
Though FAANG stocks continue to dominate the tech sector, they face several challenges as they enter 2025. Regulatory scrutiny is one of the key obstacles, with Apple under investigation by the European Union for breaching the Digital Markets Act, which could result in significant fines. Market volatility is another concern, as the U.S. stock market experienced turbulence in late 2024, raising doubts about the sustainability of growth for these companies.
Therefore, all FAANG companies must continue to innovate, particularly in AI and emerging technologies, to meet evolving consumer demands and fend off growing competition.
