Sometimes adjectives lose their zing. That might appear to be the case this year when a certain description is used for some of the biggest companies on the planet. Most of the so-called "Magnificent Seven" stocks aren't so magnificent anymore.
However, just because these stocks aren't flying as high in 2025 as they were over the past two years doesn't mean they aren't still good picks for long-term investors. For example, I think Meta Platforms (META -0.91%) and Apple (AAPL 0.49%) should have plenty of room to run over the next decade and beyond.
I own stakes in both of these technology giants, but one has captured my attention more than the other in recent months. Is Meta Platforms a better Magnificent Seven stock to buy right now than Apple?
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Investors seem to be voting with their pocketbooks for Meta over Apple so far in 2025. Meta's share price has rebounded nicely after an initial sell-off and is now again in positive territory year to date. The company's first-quarter update provided a nice catalyst.
Meta is growing faster than Apple. Its revenue jumped 16% year over year in Q1 to $42.3 billion. Profits soared 35%. Meanwhile, Apple's revenue and earnings rose around 5% year over year in its latest quarter.
Don't look for Apple to magically start growing faster than Meta anytime soon, either. Wall Street expects Meta to deliver revenue growth of more than 13% in 2025 and 2026. Analysts project Apple's revenue will increase by roughly 4% in 2025 and by 6% in 2026.
But do the two Magnificent Seven stocks' valuations reflect these growth disparities? Nope. Meta's shares trade at a forward price-to-earnings ratio of 23.8 and a price-to-earnings-to-growth (PEG) ratio (based on analysts' five-year earnings growth projections) of 1.98. Apple's forward earnings multiple is 27.1, although its PEG ratio matches Meta's.
Making smart investing decisions involves more than merely comparing the numbers of two stocks, though. We have to peer into our crystal balls in an attempt to predict the future. How might Meta and Apple fare over the next one year, five years, 10 years, or more? The challenge in answering this question is the unknowns for the two companies.
The Trump administration's tariffs present a more serious near-term threat for Apple than for Meta. The two companies' recent quarterly earnings calls made this clear. Apple's executives spoke quite a bit about tariffs, with CEO Tim Cook acknowledging the uncertainty they create for his company. The word "tariff" wasn't mentioned even once during Meta's Q1 earnings call.
Apple also faces unknowns related to the federal antitrust lawsuits against Alphabet's Google business. It could potentially lose the $20 billion per year Google pays for its search engine to be the default on Apple's Safari browser.
I think the biggest question for Meta is: Will its huge metaverse investment pay off, and, if so, how long will it take? The company's initial success in smart glasses could help it pioneer a new market with explosive growth potential. However, Apple is also eyeing this market. The iPhone maker is reportedly developing two types of smart glasses, one supporting augmented reality and another that doesn't.
Despite the uncertainties, both Meta and Apple should deliver solid returns for investors over the long run. I continue to like both stocks. However, I think one is the better pick right now.
Meta's growth story is clearly stronger than Apple's. That isn't likely to change over the next few years. The massive user base for its Facebook, Instagram, Messenger, and WhatsApp apps should continue to attract advertisers. And while I wouldn't bet against Apple in the smart glasses market, I suspect Meta will remain a top player.
Investors who buy Apple on its steep pullback will probably be glad they did a few years from now. But if you can only buy one of these Magnificent Seven stocks right now, I think the smarter choice is Meta.
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