10 Best Blue Chip Stocks to Buy for 2025

3. Meta Platforms Inc (NASDAQ:META)

Market Cap as of January 8: $1.54 Trillion

Past Year Gain (2024): 71%

Number of Hedge Fund Holders: 235

Meta Platforms Inc (NASDAQ:META) is a communication services juggernaut that owns and operates four of the most used social networking apps. The company’s edge as one of the best blue chip stocks to buy for 2025 stems from its flagship apps commanding billions of daily active users. Facebook, Instagram, WhatsApp and Messenger are the apps that are strengthening the social networking juggernaut’s prospects in the burgeoning digital advertising sector.

The company’s advertising revenues are rising as the macro environment stabilizes on lower interest rates. Additionally, Meta Platforms Inc (NASDAQ:META) is attracting more spending from Chinese gaming and e-commerce companies looking to target its massive user base across various platforms. In addition, artificial intelligence greatly benefits the company’s advertising tools.

The fact that over 1 million advertisers are already using Meta Platforms Inc (NASDAQ:META) generative-powered tools affirms the company’s growth prospects in the lucrative digital advertising landscape. While the Reality Labs division is yet to turn profitable, things should change with the integration of AI features. The company is launching AI-powered Ray Ban smart glasses, which are expected to provide another solid revenue stream beyond digital advertising.

Here is what Hardman Johnston Global Equity said about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:

“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”