Meta Platforms, Inc.

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Bullish +75

Prediction: These 2 Stocks Will Be Worth More Than Apple in a Decade

AI-generated analysis

πŸ“ˆ Apple currently holds the world's second-largest market cap at $3.7 trillion, though it may not maintain its top position for long.

πŸ’» Amazon is aggressively leveraging generative AI across cloud computing (AWS), advertising, and retail to potentially surpass Apple by 2035.

πŸš€ Meta Platforms has already switched focus from the metaverse to AI, delivering 16% revenue growth and 73% EPS growth in 2023.

πŸ“‰ Meta currently trades at a valuation of 20 times forward earnings compared to Apple's nearly 30 times, offering room for expansion.

πŸ€– Amazon's advertising business now generates nearly $60 billion annually, further strengthened by AI-driven profit maximization.

⚑ Meta is expanding monetization of AI into areas beyond social media ads, including wearables and new revenue streams.

πŸ“Š Analysts predict that if both Amazon and Meta successfully capitalize on AI trends, they could eclipse Apple's market cap within a decade.

❗ The article warns that while Apple remains well-positioned, the rapid growth of AI could push other Magnificent Seven stocks above it.

πŸ’° Nvidia is mentioned as a critical technology provider needed by companies like Intel and Amazon, though not one of the two predicted to beat Apple.

πŸ›‘οΈ Thomas Niel and The Motley Fool disclose specific positions in Amazon, Apple, and Meta, including short shares of Apple.

Bullish Signals
  • Amazon (NASDAQ: AMZN) is aggressively capitalizing on generative AI growth catalysts with its dominant cloud computing market position through Amazon Web Services (AWS).
  • Amazon's advertising business, once considered an 'also-ran', now generates nearly $60 billion in annual sales and is leveraging AI for further growth.
  • Meta Platforms (NASDAQ: META) switched from the metaverse to AI starting in late 2022, leading to a significant growth resurgence by 2023.
  • In 2023, Meta saw revenue increase 16% and earnings per share (EPS) rise 73% due to AI-driven monetization of social media platforms through advertising.
  • Meta has expanded AI monetization beyond online advertising into areas like AI-enhanced wearables, diversifying revenue streams.
  • Meta currently trades for only 20 times forward earnings compared to Apple's nearly 30 times, offering potential valuation expansion upside.
  • The Motley Fool recommends Amazon, Apple, and Meta Platforms based on their positions and the growth outlook of these companies.
Risk Factors
  • Meta Platforms needs to generate even greater growth than Amazon (currently $2.27 trillion market cap) to surpass Apple ($3.7 billion), as its current market cap of just $1.4 trillion requires a larger leap.
  • Meta is trading at only 20 times forward earnings compared to Apple's nearly 30 times, suggesting lower valuation expansion potential despite higher earnings growth.
  • AI revenue streams for Meta are currently tied to cyclical advertising markets, which may limit steady profitability if the company fails to diversify beyond online advertising.
  • The Motley Fool has a short position in Apple stock, potentially creating a conflict of interest or bias when predicting its market cap relative to competitors.
  • Amazon's AI growth is described as 'early days,' implying significant uncertainty and risk that it may fail to dominate markets as predicted before 2035.
Full Analysis
This article argues that while Apple currently holds the title of the world's second most valuable company with a market capitalization of $3.7 trillion according to the text, Amazon and Meta Platforms could surpass this valuation within the next decade through their aggressive adoption of generative artificial intelligence. The publication suggests that although Amazon is not typically viewed as an AI front-runner, its dominance in cloud computing via Amazon Web Services (AWS) combined with a booming advertising business generating nearly $60 billion annually positions it for outsized growth. With a current market cap of $2.27 trillion, Amazon would need to continue leveraging AI to dominate enterprise computing and optimize its retail business to eclipse Apple by 2035. Meta Platforms is also highlighted as a key competitor with significant momentum following its strategic pivot from the metaverse to artificial intelligence starting in late 2022. This shift resulted in a notable resurgence for the company in 2023, where revenue increased by 16% and earnings per share rose by 73%. Meta is currently valued at $1.4 trillion with a price-to-earnings ratio of approximately 20 times forward earnings, compared to Apple's nearly 30 times. The article posits that beyond higher earnings growth, valuation expansion could help Meta achieve the necessary leap to become more valuable than Apple over a ten-year period, particularly as it monetizes AI in areas beyond advertising, including AI-enhanced wearables. The text concludes with promotional content from Stock Advisor regarding "Double Down" stock recommendations for Nvidia, Apple, and Netflix, citing hypothetical investment returns to encourage reader interest. It notes that Thomas Niel holds no position in the mentioned stocks, while The Motley Fool maintains positions in Amazon, Apple, and Meta Platforms but is also short Apple shares. The article explicitly states that all Stock Advisor returns are as of March 28, 2026.