We recently published a list of Analysts Identify 10 Least Risky Internet Stocks To Invest In. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other least risky internet stocks to invest in.
Investors usually do not waste any time reminding everyone of the dot-com bubble whenever the market takes a turn for the worse. With a recession imminent, some sectors have already corrected by so much that they are in bear market territory. Internet stocks belong to the same group.
Analysts at Evercore believe most of the internet stocks have very limited exposure to tariffs but still get hammered every time the market crashes on tariff developments. This means these stocks now present a favorable risk-to-reward ratio for investors.
We therefore decided to dig into the details of each of these internet stocks. To come up with our list of the 10 least risky internet stocks, we used the list compiled by Evercore’s analysts and ranked them by risk, with the least risky stock taking the number one spot.
Meta Platforms, Inc. is the developer of products that help people to share and connect with their family and friends. It enables them to connect through personal computers, augmented reality, wearables, mobile devices, and virtual reality and mixed reality headsets. The company operates in Reality Labs (RL) and Family of Apps (FoA) segments.
Guggenheim reiterated its Buy rating on the stock last week, citing strong user engagement on its platforms as a major strength for the company. Regardless of macroeconomic uncertainty, the firm remains a preferred choice for advertisers. The research firm expects Meta to benefit from growth in reels and increased efficiency through its Advantage+ platform. Although the firm cut its target price to $675, it still sees a potential upside of 30.8%.
A few days ago, the company announced the expansion of its artificial intelligence models. As per the announcement, Meta will use public content from European Union users to train its AI models. EU users of WhatsApp, Facebook, and Instagram will be notified about the data collection.
“We’re following the example set by others, including Google and OpenAI, both of which have already used data from European users to train their AI models. We’re proud that our approach is more transparent than many of our industry counterparts.”
With regulation becoming an increasing risk for these tech companies, it is interesting to see META getting proactive and complying from the beginning rather than waiting for regulatory authorities to crack down later.
Overall, META ranks 5th on our list of least risky internet stocks to invest in. While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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