Meta Platforms Stock Is Not a Top Pick at This Point. Here’s Why.

Meta Platforms (META) continues to grow rapidly, and evidence suggests that artificial intelligence (AI) is making its ads more effective. Still, the company's financial results appear unlikely to get a huge boost from AI in the bigger picture, while Meta also does not appear to have many imminent positive catalysts on the way. Meta's core ad business is also quite vulnerable to a potential drop in consumer spending, which could eventually be triggered by elevated oil prices and tariffs.

Conversely, Amazon (AMZN) is benefiting tremendously from the AI boom and appears likely to continue to do so. Amazon has multiple, needle-moving businesses working for it as well, making the case for AMZN stock even stronger.