AMZN vs. TSLA vs. META: Which Magnificent 7 Stock Is Wall Street's Best Buy Right Now?
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It is worth noting that chip giant Nvidia, which is the best-performing Magnificent 7 stock on a year-to-date basis (up nearly 23%), recently became the first company to hit the $4 trillion mark in market capitalization.
Amazon (NASDAQ:AMZN) Stock
E-commerce and cloud computing giant Amazon is proving the resilience of its business model despite macro challenges and tariff woes. Several analysts are bullish about the company's higher-margin Amazon Web Services (AWS) cloud computing unit and expect it to gain from AI-related tailwinds. In Q1 2025, the AWS division contributed 19% of its revenue but a remarkable 63% of the overall operating profits.
Moreover, Amazon's rapidly growing advertising business is seen as a major growth driver. Looking ahead, Wall Street expects Amazon to report a 4% year-over-year growth in its second-quarter earnings per share (EPS) of $1.31 and a 9.4% rise in revenue to about $162 billion.
Is AMZN a Buy, Sell, or Hold?
Recently, Morgan Stanley analyst Brian Nowak increased the price target for Amazon stock to $300 from $250 and reiterated a Buy rating. After recently cutting estimates, Nowak increased his 2026 and 2027 estimates by 9% and 6%, to $8 and $9, respectively, to reflect lower and manageable tariffs and a more constructive macro backdrop. The 5-star analyst stated that the CIO survey bolstered his expectation of acceleration in AWS revenue.
With 45 Buys and one Hold, Amazon stock scores a Strong Buy consensus rating on TipRanks. The average AMZN stock price target of $248.98 indicates 11% upside potential. AMZN stock has risen 2.6% year-to-date.
Tesla (NASDAQ:TSLA) Stock
Tesla stock is down 22.4% year-to-date and is currently the worst-performing Magnificent 7 stock. Weak sales amid intense competition in the electric vehicle (EV) space, macro challenges, margin pressures, and CEO Elon Musk's political ambitions have dragged down TSLA stock.
Notably, Musk's formation of a new political party following a fallout with U.S. President Donald Trump has shaken investors' confidence, raising concerns about the future of the EV company. The news of Musk forming the America Party reversed the improvement in investor sentiment in reaction to his stepping down from the leading role at DOGE and the recent launch of robotaxis in Austin, Texas. Moreover, the end of the federal tax credit of $7,500 for the purchase of new EVs is also expected to hit Tesla's sales in the times ahead.
Is Tesla Stock a Buy?
Recently, Goldman Sachs analyst Mark Delaney lowered his price target for Tesla stock to $285 from $315 and reaffirmed a Hold rating as part of a broader research note on U.S. Autos and Industrial Tech industry.
The 5-star analyst increased his U.S. auto forecast to reflect more 'measured' tariff levels than what had been initially proposed. That said, he continues to expect moderation in U.S. auto sales in the second half of 2025 after pre-buying ahead of tariffs and a potential rise in prices due to tariffs. Specifically, Goldman Sachs estimates U.S. auto sales at 15.75 million and 15.50 million units in 2025 and 2026, respectively, compared to its prior forecast of 15.40 million and 15.25 million.
Overall, Wall Street has a Hold consensus rating on Tesla stock based on 14 Buys, 13 Holds, and nine Sell recommendations. The average TSLA stock price target of $295.80 indicates about 6% of possible downside from current levels.
Meta Platforms (NASDAQ:META) Stock
Meta Platforms' first-quarter results proved the social media giant's ability to navigate a challenging environment and deliver strong performance. The company is aggressively investing in data center infrastructure to support its AI ambitions. Meta recently announced $14.3 billion investment in Scale AI to secure high-quality training data for AI models, reinforcing its focus on this lucrative growth opportunity.
Meta Platforms is scheduled to announce its second-quarter results after the market closes on July 30. Wall Street expects META to report EPS of $5.84 for Q2 2025, reflecting a 13% year-over-year growth. Analysts expect revenue to rise 14.2% year-over-year to $44.6 billion.
Is META a Good Stock to Buy?
Recently, Piper Sandler analyst Thomas Champion reiterated a Buy rating on Meta Platforms stock with a price target of $808. The 4-star analyst called META stock Piper Sandler's top large-cap internet pick, noting improving digital ad trends and investor sentiment heading into second-quarter results. Champion raised his estimates for META and highlighted strong trends indicated by checks and the company's significant AI investments.
The analyst expects beat-and-raise second-quarter results, given that digital ad spend grew 6.6% year-over-year, marking a notable acceleration from Q1 2025. Further, Champion highlighted positives like Meta's new WhatsApp ad units, Reels product, and strength in new verticals such as travel and consumer packaged goods (CPG). CEO Mark Zuckerberg's hiring strategy and the company's AI roadmap also support Champion's bullish stance.
Including Champion, 42 analysts have a Buy rating on Meta Platforms stock while four have a Hold recommendation, bringing the consensus rating to a Strong Buy. The average META stock price target of $736.67 indicates a modest 2.7% upside potential. META stock has rallied 22.5% year-to-date.
Conclusion
Wall Street is sidelined on Tesla stock, but is bullish on Meta Platforms and Amazon stocks. They currently see higher upside in Amazon stock than in the other two Magnificent 7 stocks discussed here. Wall Street's bullish stance on Amazon stock is backed by its dominance in e-commerce and cloud computing, AI-related tailwinds, and growing advertising business.
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