Prediction: 2 Stocks That’ll Be Worth More Than Microsoft 5 Years From Now

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For a while now, the ranks of the most valuable corporations on the globe have been switching among Nvidia, Microsoft, and Apple. After holding the number one position for several years, Apple dropped to third place. Not long ago, Nvidia surpassed Microsoft to claim the top spot.

In the current scenario, it seems likely that Nvidia will maintain its leading position for a while, but there are contenders, namely Amazon and Meta Platforms, that I anticipate will surpass Microsoft in the near future. Here’s why these two companies stand out:

1. Amazon: With its vast network of services ranging from e-commerce to cloud computing, Amazon continues to expand its influence across various industries. Its innovative approach and relentless pursuit of growth make it a strong contender for Microsoft’s position.

2. Meta Platforms: Formerly known as Facebook, Meta Platforms has been making significant strides in the world of technology, particularly in areas such as virtual reality (VR) and augmented reality (AR). With its focus on the future of human-computer interaction through these technologies, Meta Platforms is set to challenge Microsoft’s dominance.

1. Amazon: AI and more

Currently, Amazon ranks as the fourth most valuable corporation globally, boasting a market capitalization of approximately 2.4 trillion dollars. However, its potential is far from exhausted, with significant momentum in artificial intelligence (AI), among other key areas, fueling its ongoing expansion.

Amazon Web Services (AWS), Amazon’s branch specializing in cloud services, dominates globally with a market share of approximately 30%, compared to Microsoft Azure’s 21%. As per Statista, this is the current state of affairs. The realm of artificial intelligence (AI) and cloud computing are experiencing exponential growth right now, and AWS is where the AI business thrives.

Amazon Web Services (AWS) provides a vast range of cloud computing solutions tailored for businesses of all types and scales. The possibilities presented by Generative Artificial Intelligence are drawing in fresh customers to this platform.

Amazon provides three tiers for creating generative AI:

1. The entry-level allows developers to construct their own large language models (LLMs).
2. The mid-tier enables users to select from a variety of pre-built LLMs for a personalized yet semi-custom experience.
3. The top tier caters specifically to small businesses with ready-made solutions.

Amazon’s management emphasizes that it offers numerous features, consistently updating them, far more than its competitors.

I’m noticing a significant investment of over $100 billion by management this year, as they foresee a swift approach where Artificial Intelligence (AI) becomes an essential foundation for every emerging application. Their aim is to establish a leading role, so they can reap the benefits when this transformation unfolds.

The main factor that could make Amazon surpass Microsoft lies in the fact that Amazon Web Services (AWS) is generally considered more effective, and it holds a larger portion of the market compared to Microsoft Azure.

While AI presents significant opportunities, it’s important to remember that Amazon’s core strength lies in e-commerce, which is still expanding at a faster pace than traditional retail. The company plays a dual role here: driving the shift towards e-commerce and profiting from this transformation. Amazon consistently enhances its delivery speed and reaches more customers quicker, while continuously expanding its product range to solidify its business and preserve its market dominance. This makes customers increasingly dependent on Amazon’s marketplace for an increasing number of their purchases.

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Apart from ongoing projects, the company is also working on some fresh initiatives, including its Project Kuiper for satellite-based broadband services. They’ve already launched their initial low-orbit satellites into space and aim to provide cost-effective broadband connections in numerous regions, with a focus on underdeveloped areas, by the year’s end.

I’m absolutely thrilled about Amazon’s dynamic presence in numerous burgeoning sectors! Over the coming years, I firmly believe their stock will mirror this vibrancy and progress.

2. Meta: Everyone is on Facebook

Meta, a prominent tech company, oversees a suite of popular global social media platforms such as Facebook, WhatsApp, Instagram, and Messenger, collectively known as its App Family. Additionally, it operates Reality Labs, a business focusing on virtual reality technology. As of Q1 2025, approximately 3.4 billion people worldwide utilize at least one of these social media apps, accounting for nearly half the planet’s population today.

The business mainly earns revenue via advertising, given its vast reach to numerous potential customers, it has risen to become one of the biggest advertising firms globally. Its expansion strategies include attracting additional members, which increases ad views, raising prices, and extending viewing hours, thereby prolonging ad exposure. They employ AI technology to understand each user’s preferences and present relevant content accordingly.

Meta provides AI-powered chatbots for its users, aiming to maintain their engagement and platform presence. It’s particularly noteworthy that revenue per active user is growing, a trend that’s even more remarkable given the ongoing growth in active users themselves.

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In simpler terms, Mark Zuckerberg, the CEO, envisions a time when AI will streamline advertising, allowing clients to input their budget and objectives, after which the system manages everything else. He anticipates that this boost in productivity will expand the advertising industry beyond its current size, making Meta one of the main beneficiaries. The advertising sector is already witnessing advancements due to AI. A recently developed AI model has led to a 5% increase in conversions and attracted 30% more advertisers to use these tools.

Mark Zuckerberg believes that artificial intelligence (AI) will enhance user engagement on social media platforms, leading to increased growth. Moreover, an increasing number of businesses are utilizing WhatsApp for their operations. Given Meta’s extended growth potential and its ability to captivate investors, the company’s stock is expected to surge further, potentially surpassing industry giants such as Microsoft in the process.

This venture operates economically with minimal expenses, which are reducing relative to revenue, resulting in a robust financial structure. The operational income is expanding faster than the revenue, and earnings per share increased by 37% to reach $6.43. Now, let’s compare Microsoft, Meta, and Amazon regarding growth and market value.

Company Q1 Sales growth Operating income growth P/E ratio
Microsoft 13% 16% 39
Amazon 9% 20% 36
Meta 16% 27% 29

Meta, the quickest expanding company among them, also boasts the lowest costs, which means there is more potential for its stock price to rise. On the other hand, Amazon is growing at a slower pace compared to Microsoft, but it comes with lower costs and faster-growing earnings. If these trends persist, both companies could surpass Microsoft in terms of size and worth.

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2025-07-17 14:38