January 2025 is an ideal time to begin new investment decisions, with many promising stocks experiencing strong growth trends. This article will introduce the top 8 stocks you should consider investing in right at the start of the year. These options not only have strong foundations but are also on a path to sustainable development.
1. Alphabet (NASDAQ: GOOG)
- Current GOOG stock price: $190.80 (up 32.57% compared to last year)
- GOOG stock price prediction in 1 year: $326.22 (up 68.81%)
Alphabet, the parent company of Google, not only owns the world’s largest search engine but also dominates the online advertising platforms. Additionally, Alphabet operates many other notable products and services such as YouTube, Gmail, Google Cloud, Google Maps, Google Play, and Waymo. Thanks to its diversity and vast influence, Alphabet maintains a dominant position in the technology sector with a clear competitive advantage.
Recently, in Q3 of 2024, Alphabet announced an impressive 15% year-over-year revenue growth, reaching a total revenue of $88.3 billion. The integration of artificial intelligence (AI) into the company’s advertising products is expected to continue driving strong revenue growth. However, Alphabet is currently facing a major challenge: the emergence of OpenAI’s SearchGPT and the Perplexity search engine based on large language models (LLM). Nevertheless, Google has succeeded in protecting its search market share, losing less than 2% of traffic between December 2023 and December 2024.
An important point to note is that Alphabet has two types of stocks listed, which can cause confusion about which one to choose for investment. If you want to learn more about the differences between GOOG and GOOGL stocks, please refer to our detailed analysis. Recently, Google launched the “preview” AI feature exclusively for U.S. users, marking a significant milestone in the search engine results page (SERP) interface. This could be the most important change to Google’s business model, opening up new prospects for the development of future services.
2. Lockheed Martin (NYSE: LMT)
- Current stock price of GOOG: $190.80 (up 32.57% compared to the previous year)
- 1-year stock price prediction for GOOG: $326.22 (up 68.81%)
Alphabet, the parent company of Google, not only owns the largest search engine in the world but also dominates the online advertising platforms. Additionally, Alphabet operates many other notable products and services such as YouTube, Gmail, Google Cloud, Google Maps, Google Play, and Waymo. With its diverse offerings and vast influence, Alphabet maintains its dominant position in the tech industry with a clear competitive edge.
Recently, in Q3 2024, Alphabet reported an impressive 15% year-over-year revenue growth, reaching a total revenue of $88.3 billion. The integration of artificial intelligence (AI) into the company’s advertising products is expected to continue driving strong revenue growth. However, Alphabet is currently facing a major challenge: the launch of SearchGPT from OpenAI and the Perplexity search engine based on large language models (LLM). Despite this, Google has been successful in defending its search market share, losing less than 2% of traffic between December 2023 and December 2024.
An interesting point is that Alphabet has two types of stocks listed, which can cause confusion when deciding which stock to invest in. If you’d like to learn more about the difference between GOOG and GOOGL shares, refer to our detailed analysis. Recently, Google launched an AI “preview” feature for users in the U.S., marking a significant shift in the search engine results page (SERP) interface. This could be the most important change to Google’s business model, opening up many prospects for the development of services in the future.
3. Meta (NASDAQ: META)
- META stock price change (1 year): $602.05 (+60.54%)
- META stock price prediction in 1 year: $764.05 (+24.31%)
Meta Platforms, formerly known as Facebook, is one of the tech giants, owning popular social media platforms like Facebook, Instagram, and WhatsApp. Meta has pioneered the development of virtual reality (VR) and augmented reality (AR) technologies and aims to build a “metaverse” — a virtual space that connects people for work, entertainment, and socializing. The company focuses on innovation in how people connect and provides immersive digital experiences for users.
Recently, CEO Mark Zuckerberg announced a major overhaul of Meta’s content policy, focusing on protecting freedom of speech and applying more lenient rules regarding hate speech. This move could help boost user growth after a period of slow growth due to market saturation and fierce competition from apps like X and TikTok.
There are many positive factors for Meta’s future. In April 2024, the company reported a 34.24% year-over-year growth in earnings per share. Additionally, Meta now owns three of the top four largest social media platforms globally, and its metaverse division is gradually moving in the right direction.
Notably, Meta has started paying dividends to Class A and Class B shareholders for the first time in the company’s history. This is a sign of the company’s maturity and financial stability after many years of focusing solely on maximizing growth.
4. Microsoft Corporation (NASDAQ: MSFT)
- Current MSFT stock price: $414.77 (up 6.16% compared to last year)
- MSFT stock price prediction in 1 year: $608.61 (+45.19%)
Microsoft, one of the global software giants, continues to solidify its dominance in operating systems, productivity software, cloud computing, and gaming. The company has capitalized on the digital transformation trends during the pandemic, such as remote work, online education, and e-commerce, which have helped strengthen its leadership position.
Recently, Microsoft has emerged as a leader in artificial intelligence (AI), especially due to its large investment in OpenAI. This move has allowed the company to expand its competitive edge in the AI market, with Microsoft holding a 49% stake in OpenAI.
Financially, Microsoft reported impressive results in its 2024 fiscal year, with a record revenue of $245.1 billion, an increase of nearly 16% compared to the previous year. Notably, the company’s operating margin improved thanks to its investment in OpenAI’s ChatGPT.
With a strong position in AI, Microsoft seems well-placed to capitalize on the upcoming boom in this technology. The growth of AI promises to have widespread economic impacts, and Microsoft is one of the leading companies in tapping into this potential. Therefore, we believe this is an attractive investment opportunity right now. For a longer-term perspective on Microsoft’s potential, be sure to check out our stock forecast for MSFT from 2040 to 2050.
5. Apple (NASDAQ: AAPL)
- Current AAPL Stock Price: $230.82 (Up 24.79% from the previous year)
- 1-Year Price Prediction for AAPL: $308.15 (Up 30.02%)
Apple has firmly maintained its position as the world’s most valuable company over the past decade, thanks to its highly popular hardware and software product and service portfolio. Iconic Apple products such as the iPhone, iPad, Mac, Apple Watch, along with services like the App Store, Apple Music, and iCloud, have completely transformed the tech landscape.
In the fourth fiscal quarter, Apple reported adjusted earnings of $1.64 per share on total revenue of $94.93 billion, surpassing Wall Street expectations. This impressive result was largely driven by strong sales from the iPhone and services, with iPhone revenue alone reaching $46.22 billion, accounting for nearly 49% of total revenue.
Apple stands out not only for its innovative products but also for its massive loyal customer base, with over 1 billion active devices and more than 660 million paid subscribers. These factors make Apple an attractive long-term investment. Experts predict that the company will earn $6 per share in 2024, up from $6.13 in 2023. Notably, Apple’s projected EPS is expected to reach $6.52 in 2025, opening up a positive outlook for investors.
6. Tesla (NASDAQ: TSLA)
- Current TSLA Stock Price: $387.11 (Up 77.98% from the previous year)
- 1-Year Price Prediction for TSLA: $563.13 (Up 42.66%)
Tesla is currently the most valuable car manufacturer in the world, with a market capitalization exceeding $1.09 trillion. While its high valuation presents some growth potential limitations, Tesla continues to exceed expectations, driven by innovation and performance in its electric vehicle models, including the Model S, Model 3, Model X, Model Y, and Cybertruck.
In addition to leading the electric vehicle industry, Tesla has expanded its operations into battery storage, solar panels, and software, further enhancing the company’s value as a long-term investment. Under Elon Musk’s leadership, Tesla has attracted a large following, with investors flocking to the company due to Musk’s business vision, despite occasional controversy surrounding his decisions and statements.
TSLA stock surged after Donald Trump’s re-election, with expectations that policies favorable to the electric vehicle industry would be implemented. Additionally, many investors view Tesla as an indirect opportunity to gain exposure to SpaceX. In Q3 2024, Tesla reported earnings of $0.62 per share, surpassing Wall Street’s forecast of $0.51. Although the company’s revenue fell short of expectations ($25.18 billion), Tesla’s gross margin improved to 19.8%, indicating stability and the potential for sustainable growth in the future.
7. Amazon.com, Inc. (NASDAQ: AMZN)
- AMZN stock price (change after 1 year): $217.56 (+40.54%)
- 1-year stock price prediction for AMZN: $228.77 (+2.36%)
Amazon, a leader in e-commerce, cloud computing, and digital entertainment, has maintained impressive revenue growth for many years, especially with over 200 million loyal Prime members. Recently, Amazon expanded its empire by acquiring One Medical, entering the rapidly growing healthcare market.
Amazon’s advertising segment is thriving, with a 26% increase in revenue in Q4 2023 compared to the previous year. The implementation of advertising on Prime Video is expected to further boost this high-margin revenue source. AWS (Amazon Web Services) remains a key revenue driver, with forecasts predicting an additional $20 billion in revenue by 2025.
Many analysts are optimistic about Amazon’s prospects, with some raising the company’s stock price target to $270, suggesting a growth potential of 23%. In summary, Amazon holds significant long-term potential, particularly if it continues to maintain its dominant position in the e-commerce industry.
8. Nvidia Corporation (NASDAQ: NVDA)
- NVDA stock price (change after 1 year): $131.65 (+140.41%)
- 1-year stock price prediction for NVDA: $110.29 (-19.24%)
Nvidia is the world’s leading provider of graphic processors for gaming, artificial intelligence (AI), and data centers. The company has sustained strong revenue growth for years, delivering impressive stock prices for investors, while maintaining a large loyal customer base including gamers, developers, and cloud service providers. Nvidia also has a diverse portfolio, including ventures in automotive, healthcare, and edge computing, making NVDA stock one of the top growth investment options.
Experts expect Nvidia to report earnings per share (EPS) of $0.73 in its next earnings report, a significant leap from $0.40 in the same period last year. The surge in interest in AI, especially from OpenAI’s ChatGPT, has driven NVDA stock price up by 140% in the last 12 months.
Nvidia also reported a 30% increase in revenue in its most recent quarter, driven by high demand for AI-specific GPUs. Strategic partners such as Microsoft, Alphabet, and Meta Platforms have placed large orders for the company’s Blackwell chips, reinforcing Nvidia’s crucial role in the AI sector. However, it’s important to note that NVDA stock has outperformed in recent years, which may make the current stock price higher than its fair value.
Investing in these promising stocks not only helps optimize profits but also minimizes long-term risk. Carefully consider your options and keep an eye on the market to maximize investment opportunities in 2025.
