Alphabet (GOOGL) and Meta Platforms (META) are two of the most promising stocks among the magnificent seven grouping in 2025. Both stocks are down double-digits in 2025 so far, with Alphabet seeing a steeper drop at 22.67%. This creates an interesting scenario where several investors are looking to buy the dip on major stocks that have high chances of rebounding this year. Both GOOGL and META have this potential, but which stock is a better buy in 2025?
Some analysts suggest that Alphabet (GOOGL) could compete for top company in the world by market cap in the next few years. From 2014 to 2024, Alphabet’s revenue rose at a compound annual growth rate (CAGR) of 18% as its earnings per share (EPS) increased at a CAGR of 23%. From 2024 to 2027, analysts expect the company’s revenue and EPS to rise 11% and 13%, respectively. While the potential is there, hurdles also lie in Alphabet’s path, of which stocks like META could jump ahead in the future.
Meta Stock Outperforms Alphabet in Future?
Earlier this year, META stock was doing so well that there were talks of a potential stock split in 2025. It has since taken a step back, but has performed well amid what has been a struggling stock market. Over the last 30 days, the stock is down more than 14% and has been yet another example of a floundering tech company. Fortunately, its efforts in AI advertising and virtual reality (VR) still show promise.
Alphabet also faces intense pressure from antitrust regulators. The U.S. DOJ wants Google to sell Chrome, the world’s most popular web browser, because it collects a lot of user data that reinforces its dominance of the search and targeted advertising markets. A US Judge also recently ruled that Google operates an illegal ad monopoly, aiding in that DOJ case. In addition, the DOJ wants to restrict how Google promotes its services on Android.
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Those factors could accelerate Alphabet’s slowdown and cause it to fall behind rivals like Amazon, Microsoft, and Meta. If Alphabet doesn’t come out of these lawsuits a winner, previous predictions for the stock will be revised for the worse, allowing Meta and others to get ahead.
Meta, meanwhile, faces far fewer restrictions and obstacles in its path. The company operates the largest social networking company in the world, comprising Instagram, Facebook, and WhatsApp. It served 3.35 billion daily active users across its entire family of apps at the end of 2024. From 2014 to 2024, Meta’s revenue and EPS also increased at a CAGR of 29% and 36%, respectively. It grew faster than Alphabet because it dominated the growing social media market. If Alphabet continues to fall victim to regulatory pressure, Meta stock could quickly become the new top stock to invest in now for gains in the next few years, beating out Google.