META, UBER, or AMZN: Which Tech Stock Offers the Best Upside Potential?
The third-quarter earnings season has brought mixed results for big tech companies. While some have exceeded expectations, others have faced challenges. However, Wall Street remains optimistic about certain tech stocks due to growth drivers like artificial intelligence (AI). Using TipRanks’ Stock Comparison Tool, we compare Meta Platforms (META), Uber Technologies (UBER), and Amazon (AMZN) to see which “Strong Buy” stock could deliver the highest returns, according to analysts.
Meta Platforms (NASDAQ:META)
Social media leader Meta Platforms reported strong Q3 earnings, with revenue up 19% year-over-year to $40.5 billion and earnings per share (EPS) rising 37% to $6.03. Despite these gains, the stock saw a slight dip due to lower-than-expected user numbers. Daily active users across Meta’s platforms grew by 5% to 3.29 billion, just below the anticipated 3.31 billion.
Additionally, Meta raised its capital expenditure guidance for 2024, with CEO Mark Zuckerberg indicating a substantial increase in AI-related spending in 2025. Following the results, Baird analyst Colin Sebastian reaffirmed a “Buy” rating, increasing the price target to $630, citing Meta’s robust Q3 performance, solid user engagement, and AI-driven ad and content advancements. Most analysts are optimistic, giving META stock a “Strong Buy” rating with an average price target of $654.23, suggesting an 11% upside potential. The stock has already gained 66.5% year-to-date.
Uber Technologies (NYSE:UBER)
Uber’s Q3 results disappointed some investors, as gross bookings rose 16% year-over-year to $40.97 billion, below the expected $41.25 billion. However, revenue increased by 20% to $9.29 billion, beating estimates, and EPS jumped to $1.20 from $0.10, aided by a $1.7 billion gain from reevaluated equity investments.
Uber CEO Dara Khosrowshahi remains confident about the company’s trajectory, emphasizing that the core business supports investments in new growth avenues. Goldman Sachs analyst Eric Sheridan reiterated a “Buy” rating with a $96 target, viewing Uber’s pullback as an ideal buying opportunity. Sheridan pointed to Uber’s expanding markets, growing profitability, and potential for cross-selling on its platform. Wall Street’s consensus rating for Uber is a “Strong Buy,” with an average price target of $91.86, suggesting a potential 27.5% upside. Shares have climbed 17% so far this year.
Amazon (NASDAQ:AMZN)
Amazon’s stock has jumped 37% this year, buoyed by strong Q3 results. Revenue grew 11% to $158.9 billion, with growth in its retail, AWS, and advertising segments. EPS surged over 50% to $1.43, driven by robust revenue and improved margins. Amazon’s efficiency and cost-reduction efforts are also contributing to higher profitability.
Like its peers, Amazon is making major investments in AI. It has invested $51.9 billion in capital expenditures in 2024 and expects total spending to reach $75 billion by year-end. Citi analyst Ronald Josey increased Amazon’s price target to $252, highlighting the growth potential in AWS’s AI-driven revenue. Josey believes Amazon can continue investing for growth while enhancing margins, and he rates it as a top choice in the Internet sector. Overall, Amazon’s consensus “Strong Buy” rating and a target price of $238.35 imply a potential upside of 14.5%.
Conclusion
Meta Platforms, Uber Technologies, and Amazon each have unique growth drivers, but Wall Street is particularly bullish on Uber’s potential for long-term growth and profitability. The pullback in Uber’s stock presents an opportunity to buy at a favorable price, and analysts currently see it as having the highest potential upside among these tech giants.