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2 Leading Tech Stocks to Buy in 2025
ADBEAdobe(ADBE) The Motley Fool·2024-12-25 11:31

Group 1: Meta Platforms - Meta is trading near an all-time high with a forward P/E of 26, and analysts project earnings growth of nearly 18% annually over the long term, resulting in a PEG ratio of 1.4, indicating it is a bargain [3][6] - The company is expected to generate approximately 163billioninrevenuethisyear,reflectinga21163 billion in revenue this year, reflecting a 21% increase from 2023, with about one-third of that as free cash flow [6] - Meta is heavily investing in artificial intelligence (AI), which could provide additional growth opportunities, despite its AI segment currently not being profitable [10] Group 2: Adobe - Adobe has annual revenue of 21.5 billion, converting over 36% into free cash flow, but its stock has declined due to emerging competitive threats and concerns about AI potentially replacing its products [7][12] - The company is integrating AI technology into its offerings, and while AI can generate images, it is not yet capable of fully replacing Adobe's established tools [4][12] - Adobe's revenue is still growing at nearly 10%, with analysts expecting annualized earnings growth of 15% over the long term, resulting in a PEG ratio of 1.5, suggesting it remains an attractive investment opportunity [12]