In this article, we discuss 5 set-it-and-forget-it stocks to buy according to financial media. If you want to see more set-it-and-forget-it stocks to buy according to financial media, the risk/reward, and methodology of this list, go directly to 10 Set-It-and-Forget-It Stocks to Buy According to Financial Media.
5. Meta Platforms, Inc. (NASDAQ:META)
Market Capitalization as of 2/10: $451.51 billion
Meta Platforms, Inc. (NASDAQ:META) is viewed by the financial media as the leading social media giant that’s also one of the ‘big tech’ companies. Although the market has not liked how Meta Platforms, Inc. (NASDAQ:META) has spent tens of billions of dollars on the metaverse without much to show for it, the stock could be a pretty good long term investment if the company retains its huge userbase and if it achieves its potential in terms of AI. In terms of artificial intelligence, Meta Platforms, Inc. (NASDAQ:META) has hired hundred of the top AI researchers in the world and the company has invested substantial capital into developing the technology for almost a decade.
ClearBridge Investments commented on Meta Platforms, Inc. (NASDAQ:META) in a Q3 2022 investor letter,
We initiated a new position in Meta Platforms, Inc. (NASDAQ:META), in the communication services sector, which operates the Facebook and Instagram social media platforms and is a leading digital advertising provider. We have been carefully watching the company over the last few quarters and believe headwinds from lower monetizing in Facebook and Instagram Reels and pressures from consumer privacy measures are poised to lessen. We believe the company has begun to fully acclimate to this new environment, will achieve greater effectiveness in Reels monetization and find ways to adapt to new privacy standards which will rebound advertising efficiency. Combined with a greater focus on cost control, we believe these initiatives will help contribute to further margin expansion and leave the company well-positioned moving forward.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization as of 2/10: $1 trillion
Amazon.com, Inc. (NASDAQ:AMZN) is viewed by many in the financial media as a big tech company that is both a leading e-commerce company and a leading cloud computing leader. Given both are still growth sectors, Amazon.com, Inc. (NASDAQ:AMZN) has earnings growth potential in the long term if it maintains its market share. Considering its leadership in cloud computing, Amazon.com, Inc. (NASDAQ:AMZN) is one of the better positioned companies to benefit from increasing AI adoption among corporations and startups as it would likely lead to more demand for cloud computing overall.
In the fourth quarter of 2022, Amazon Web Services grew sales 20% year over year and generated $21.4 billion in sales. Operating income for Amazon’s cloud business was $5.2 billion.
3. Alphabet Inc. (NASDAQ:GOOG)
Market Capitalization as of 2/10: $1.21 trillion
Alphabet Inc. (NASDAQ:GOOG) is viewed as a big tech company that has a lot of AI potential given its substantial financial resources and world class employees. While Microsoft Corporation (NASDAQ:MSFT) could gain more market share from Alphabet Inc. (NASDAQ:GOOG) in search in the near term, the battle between the two is viewed as a battle between two heavyweights. As it stands, Alphabet Inc. (NASDAQ:GOOG) is indeed a heavy weight and perhaps arguably still the leading company in AI given its substantial investments in the technology over the past decade.
Although it could lose market share in the near term, Alphabet Inc. (NASDAQ:GOOG) does have earnings growth potential if it maintains its leadership in AI in the future. Maintaining leadership requires data and smarts and Alphabet Inc. (NASDAQ:GOOG) arguably has both. Alphabet Inc. (NASDAQ:GOOG) will need to successfully utilize its data and smarts to develop profitable services, however, that can match or exceed market profit estimates for the future.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization as of 2/10: $1.96 trillion
Given ChatGPT’s popularity in recent months, many in the financial media view Microsoft Corporation (NASDAQ:MSFT) as a software giant that also has AI technology given it is the backer of OpenAI which makes ChatGPT. With Microsoft Corporation (NASDAQ:MSFT) planning to incorporate ChatGPT into Bing, there is potential for the company to gain more market share in the lucrative market of search even if ChatGPT makes many mistakes. If AI is indeed a big part of the future and Microsoft Corporation (NASDAQ:MSFT) succeeds in maintaining substantial market share in AI, the company could have long term upside.
1. Apple Inc. (NASDAQ:AAPL)
Market Capitalization as of 2/10: $2.39 trillion
Apple Inc. (NASDAQ:AAPL) is viewed by many in the financial media as a leading maker of iPhones and a branding expert that’s also one of the big tech companies. Given Apple Inc. (NASDAQ:AAPL)’s share of the lucrative high end smartphone market, the company is indeed one of the best marketing companies in the world. Given its market capitalization of $2.39 trillion, Apple Inc. (NASDAQ:AAPL) ranks #1 on our list of 10 Set-It-and-Forget-It Stocks to Buy According to Financial Media.
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