Communication Stocks Aim for a Strong Finish in 2025: An Analysis of 3 Charts.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2025
0mins
Should l Buy META?
Source: Barron's
Strong Performance: The communication services sector has shown consistent strength in 2025, ranking among the top three sectors in the S&P 500.
Performance Metrics: This sector has excelled in one-month, six-month, and year-to-date performance metrics, indicating robust growth and stability.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 644.780
Low
655.15
Averages
824.71
High
1117
Current: 644.780
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meta's AI Patent Sparks Controversy Over Posthumous Activity
- User Engagement Milestone: Meta reported over 3.5 billion daily active users in Q4 across its platforms, including Facebook, Instagram, and WhatsApp, highlighting its significant influence and user retention in the social media landscape.
- AI Patent Controversy: The company secured a patent allowing the simulation of social media activity for deceased users, which has sparked considerable backlash from consumers, potentially harming its brand reputation despite no immediate plans for implementation.
- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
See More
Stock Market Rebounds Led by Tech Stocks
- Nasdaq Rebound: The Nasdaq index ended its five-week losing streak with a 1.9% increase last Friday, primarily driven by strong performances from major tech stocks like Meta, Nvidia, and Amazon, indicating a potential recovery in the tech sector.
- Supreme Court Ruling Impact: The U.S. Supreme Court's 6-3 decision to overturn Trump's emergency tariff policy led to a 0.7% rise in the S&P 500 on Friday, although uncertainty regarding future tariff policies continues to affect stocks like Nike, which faces a $1.5 billion tariff headwind.
- Private Credit Crisis: Concerns over Blue Owl Capital's restriction on retail investor withdrawals caused its shares to drop nearly 6% on Thursday, raising alarms about potential issues in the private credit market and impacting major financial firms like Ares and Blackstone.
- Strong Performance from Big Tech: Meta and Nvidia saw increases of 2.5% and 3.8%, respectively, while Amazon surged 5.6% after Bill Ackman's fund significantly increased its stake, reflecting strong investor confidence in AI demand and boosting optimism in tech stocks.
See More
Nvidia Stock Outlook Amid AI Market Dynamics
- Significant Revenue Growth: Nvidia's revenue for the fiscal third quarter of 2026 rose 62% year-over-year to $57 billion, highlighting strong demand in the AI sector, particularly with data center revenue increasing 66% to $51.2 billion, indicating the company's pivotal role in the rapidly expanding AI market.
- Strong Client Spending Plans: Major tech companies like Amazon, Meta, and Alphabet have announced capital expenditure plans for 2026 totaling $200 billion, $115 billion to $135 billion, and $175 billion to $185 billion respectively; while not all funds will go to Nvidia, these budgets signal ongoing investment in AI hardware, suggesting sustained business growth for Nvidia.
- Increased Competitive Pressure: As customers reduce reliance on single suppliers, companies like Amazon are accelerating their internal chip development, with projected annual revenue from custom chips exceeding $10 billion, which could erode Nvidia's pricing power and impact future profit margins.
- Long-term Growth Expectations: Although Nvidia's business continues to grow, increasing competition and customer cost pressures may lead to annual returns of 10% to 12% over the next five years, with stock prices projected to reach between $303 and $331, reflecting a cautious optimism about its future performance.
See More
Nvidia's Revenue Growth Accelerates Amid Strong AI Demand
- Significant Revenue Growth: Nvidia's revenue surged 62% year-over-year in fiscal Q3 2026 to $57 billion, driven by a 66% increase in data center revenue to $51.2 billion, highlighting its strong position in the AI market.
- Major Corporate Investment Plans: Tech giants like Amazon, Meta, and Alphabet plan to invest approximately $200 billion, $115 billion to $135 billion, and $175 billion to $185 billion in capital expenditures in 2026, indicating sustained demand for data centers that will bolster Nvidia's growth.
- Increased Competitive Pressure: While Nvidia's business continues to grow, customers are reducing reliance on single suppliers, with Amazon's custom chip initiatives generating over $10 billion in annual revenue at a triple-digit growth rate, potentially eroding Nvidia's pricing power.
- Cautious Future Outlook: Despite Nvidia's stock rising over 750% in the past three years, analysts predict a more normalized growth rate over the next five years, with annual compounding expected between 10% and 12%, necessitating investors to adjust their expectations in light of market dynamics.
See More
Amazon and Meta: Growth Stocks to Hold for the Next Decade
- Amazon's Market Leadership: Amazon (AMZN) leads in both e-commerce and cloud computing, with its North American operating income rising 24% last year, showcasing strong operating leverage driven by its largest global logistics network.
- Cloud Business Growth: Amazon Web Services (AWS) is the company's most profitable and fastest-growing segment, achieving 24% revenue growth last quarter, with capital expenditures ramping up to $200 billion this year to seize market opportunities.
- Valuation Advantage: Amazon's forward P/E ratio is below 27 times, contrasting sharply with peers like Walmart and Costco, which trade above 40 times, indicating its stock's attractiveness for long-term investors.
- Meta's AI-Driven Growth: Meta (META) has leveraged AI to enhance its recommendation engine, accelerating revenue growth to 24%, with projections for Q1 growth between 26% and 34%, while also introducing ads on new platforms like WhatsApp and Threads to expand revenue streams.
See More
MarketBeat Weekly Recap – February 16 to February 20
Market Volatility: Investors are facing prolonged market volatility, particularly influenced by the U.S. Supreme Court's decision to strike down emergency tariffs, which has led to oscillations between losses and gains in the markets.
Focus on Technology Stocks: The ongoing focus remains on technology stocks, especially those related to artificial intelligence (AI), as investors weigh geopolitical concerns and the implications of military presence in the Middle East.
Earnings Reports and Stock Performance: Companies like NVIDIA and Oracle are set to release earnings reports, with analysts predicting strong performance, while other stocks, such as Qualcomm, have faced skepticism due to recent downturns in the tech sector.
Investment Opportunities: Despite challenges, there are still opportunities for investors in beaten-down sectors, with analysts highlighting potential stocks that could deliver upside surprises amidst a difficult economic environment.
See More
Meta's AI Patent Sparks Controversy Over Posthumous Activity
- User Engagement Milestone: Meta reported over 3.5 billion daily active users in Q4 across its platforms, including Facebook, Instagram, and WhatsApp, highlighting its significant influence and user retention in the social media landscape.
- AI Patent Controversy: The company secured a patent allowing the simulation of social media activity for deceased users, which has sparked considerable backlash from consumers, potentially harming its brand reputation despite no immediate plans for implementation.
- User Experience Risks: The patent suggests that users could continue to post content posthumously, which may negatively impact other users, particularly on an emotional level, leading to a decline in trust towards the platform.
- Future Strategic Considerations: While Meta has no current plans to implement this technology, the existence of the patent indicates that the company may consider leveraging it for commercialization in the future, particularly in the realms of digital legacy and virtual memorialization.
See More
Stock Market Rebounds Led by Tech Stocks
- Nasdaq Rebound: The Nasdaq index ended its five-week losing streak with a 1.9% increase last Friday, primarily driven by strong performances from major tech stocks like Meta, Nvidia, and Amazon, indicating a potential recovery in the tech sector.
- Supreme Court Ruling Impact: The U.S. Supreme Court's 6-3 decision to overturn Trump's emergency tariff policy led to a 0.7% rise in the S&P 500 on Friday, although uncertainty regarding future tariff policies continues to affect stocks like Nike, which faces a $1.5 billion tariff headwind.
- Private Credit Crisis: Concerns over Blue Owl Capital's restriction on retail investor withdrawals caused its shares to drop nearly 6% on Thursday, raising alarms about potential issues in the private credit market and impacting major financial firms like Ares and Blackstone.
- Strong Performance from Big Tech: Meta and Nvidia saw increases of 2.5% and 3.8%, respectively, while Amazon surged 5.6% after Bill Ackman's fund significantly increased its stake, reflecting strong investor confidence in AI demand and boosting optimism in tech stocks.
See More
Nvidia Stock Outlook Amid AI Market Dynamics
- Significant Revenue Growth: Nvidia's revenue for the fiscal third quarter of 2026 rose 62% year-over-year to $57 billion, highlighting strong demand in the AI sector, particularly with data center revenue increasing 66% to $51.2 billion, indicating the company's pivotal role in the rapidly expanding AI market.
- Strong Client Spending Plans: Major tech companies like Amazon, Meta, and Alphabet have announced capital expenditure plans for 2026 totaling $200 billion, $115 billion to $135 billion, and $175 billion to $185 billion respectively; while not all funds will go to Nvidia, these budgets signal ongoing investment in AI hardware, suggesting sustained business growth for Nvidia.
- Increased Competitive Pressure: As customers reduce reliance on single suppliers, companies like Amazon are accelerating their internal chip development, with projected annual revenue from custom chips exceeding $10 billion, which could erode Nvidia's pricing power and impact future profit margins.
- Long-term Growth Expectations: Although Nvidia's business continues to grow, increasing competition and customer cost pressures may lead to annual returns of 10% to 12% over the next five years, with stock prices projected to reach between $303 and $331, reflecting a cautious optimism about its future performance.
See More
Nvidia's Revenue Growth Accelerates Amid Strong AI Demand
- Significant Revenue Growth: Nvidia's revenue surged 62% year-over-year in fiscal Q3 2026 to $57 billion, driven by a 66% increase in data center revenue to $51.2 billion, highlighting its strong position in the AI market.
- Major Corporate Investment Plans: Tech giants like Amazon, Meta, and Alphabet plan to invest approximately $200 billion, $115 billion to $135 billion, and $175 billion to $185 billion in capital expenditures in 2026, indicating sustained demand for data centers that will bolster Nvidia's growth.
- Increased Competitive Pressure: While Nvidia's business continues to grow, customers are reducing reliance on single suppliers, with Amazon's custom chip initiatives generating over $10 billion in annual revenue at a triple-digit growth rate, potentially eroding Nvidia's pricing power.
- Cautious Future Outlook: Despite Nvidia's stock rising over 750% in the past three years, analysts predict a more normalized growth rate over the next five years, with annual compounding expected between 10% and 12%, necessitating investors to adjust their expectations in light of market dynamics.
See More
Amazon and Meta: Growth Stocks to Hold for the Next Decade
- Amazon's Market Leadership: Amazon (AMZN) leads in both e-commerce and cloud computing, with its North American operating income rising 24% last year, showcasing strong operating leverage driven by its largest global logistics network.
- Cloud Business Growth: Amazon Web Services (AWS) is the company's most profitable and fastest-growing segment, achieving 24% revenue growth last quarter, with capital expenditures ramping up to $200 billion this year to seize market opportunities.
- Valuation Advantage: Amazon's forward P/E ratio is below 27 times, contrasting sharply with peers like Walmart and Costco, which trade above 40 times, indicating its stock's attractiveness for long-term investors.
- Meta's AI-Driven Growth: Meta (META) has leveraged AI to enhance its recommendation engine, accelerating revenue growth to 24%, with projections for Q1 growth between 26% and 34%, while also introducing ads on new platforms like WhatsApp and Threads to expand revenue streams.
See More
MarketBeat Weekly Recap – February 16 to February 20
Market Volatility: Investors are facing prolonged market volatility, particularly influenced by the U.S. Supreme Court's decision to strike down emergency tariffs, which has led to oscillations between losses and gains in the markets.
Focus on Technology Stocks: The ongoing focus remains on technology stocks, especially those related to artificial intelligence (AI), as investors weigh geopolitical concerns and the implications of military presence in the Middle East.
Earnings Reports and Stock Performance: Companies like NVIDIA and Oracle are set to release earnings reports, with analysts predicting strong performance, while other stocks, such as Qualcomm, have faced skepticism due to recent downturns in the tech sector.
Investment Opportunities: Despite challenges, there are still opportunities for investors in beaten-down sectors, with analysts highlighting potential stocks that could deliver upside surprises amidst a difficult economic environment.
See More
