META, UBER, or AMZN: Which “Strong Buy” Tech Stock Could Offer the Highest Upside?
The Q3 earnings season for the tech giants has been a mixed bag. While some managed to impress investors with their performance and outlook, others fell short of expectations on some metrics. Wall Street remains upbeat on several tech giants, thanks to generative AI (artificial intelligence)-led tailwinds. Using TipRanks’ Stock Comparison Tool, we placed Meta Platforms (META), Uber Technologies (UBER), and Amazon (AMZN) against each other to find the “Strong Buy” stock with the highest upside potential, according to Wall Street analysts.
Social media giant Meta Platforms reported better-than-expected Q3 revenue and earnings for the third quarter of 2024. The company’s top line grew 19% year-over-year to $40.5 billion, while EPS (earnings per share) rose 37% to $6.03.
However, shares fell after the earnings report as investors were disappointed with Meta’s subdued user numbers. Daily active people (DAP), which indicates the number of users who visited at least one of the family apps (Facebook, Instagram, Messenger, and/or WhatsApp) on a given day, increased 5% to 3.29 billion but lagged analysts’ consensus of 3.31 billion.
Moreover, the company increased its capital expenditure guidance for 2024, with CEO Mark Zuckerberg cautioning investors about a significant rise in AI infrastructure capex in 2025.
Following the Q3 print, Baird analyst Colin Sebastian reaffirmed a Buy rating on META stock and increased the price target to $630 from $605. The analyst believes that the company’s strong Q3 results reflect a stable macro backdrop, healthy user growth and engagement trends, and the benefits of AI in ad products and content recommendations. He expects AI to drive further growth for Meta Platforms in the days ahead.
Like Sebastian, most analysts are bullish on Meta Platform’s prospects. META stock scores a Strong Buy consensus rating based on 41 Buys, three Holds, and one Sell recommendation. The average META stock price target of $654.23 implies 11% upside potential. Shares have rallied 66.5% year-to-date.
Uber Technologies stock fell 9.3% on October 31, as the company reported slower-than-expected bookings growth and triggered concerns among investors about the impact of macro pressures on the demand in the ride-hailing industry. The company’s gross bookings grew 16% year-over-year to $40.97 billion, falling short of analysts’ estimate of $41.25 billion.
On the positive side, Uber’s Q3 revenue increased 20% to $9.29 billion and surpassed estimates. The company’s earnings per share (EPS) jumped to $1.20 from $0.10 in the prior-year quarter, reflecting the inclusion of a $1.7 billion benefit from unrealized gains related to the reevaluation of its equity investments.
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