Time is running out to finalize your stock transactions before the end of 2024. While this year has been remarkable for stock investors, there may still be more opportunities ahead with the acceleration of the AI revolution’s potential for monetization. Despite the limited time for last-minute purchases, I believe the following stocks are worth considering for the upcoming year and beyond. Here are two top picks for 2025 in no specific order:
**Key Takeaways**
– The AI revolution may bring about more successful companies in the new year.
– Apple and Amazon are two standout stocks with potential growth in 2025.
**Apple Unveils iPhone 15 And Other New Products**
Apple:
Apple (NASDAQ:AAPL) is a company that often faces skepticism. Starting 2024 with a high valuation, the stock ended the year even pricier at nearly 42 times trailing price-to-earnings (P/E). Despite a 37% increase throughout the year, some investors may consider taking profits, including Warren Buffett who has been selling AAPL shares. Nevertheless, I continue to view AAPL as a strong investment for the future due to Apple Intelligence.
The introduction of iOS 18.2 with Apple Intelligence features may not have met all expectations, but it’s a promising step towards personalized AI. While the current AI capabilities are not groundbreaking, further advancements are expected in the future. Apple’s cautious approach prioritizes security and user safety, potentially leading to significant long-term growth.
Amazon:
Amazon (NASDAQ:AMZN) is also at the forefront of AI advancements and is predicted to make waves in 2025. Despite a substantial 50% increase in 2024, Amazon remains a top internet selection for Citi analysts. The company’s investments in enhancing delivery services and leveraging AWS and AI could drive profitability and growth in the coming year.
Overall, both Apple and Amazon are poised to benefit from the evolving landscape of AI technology, making them appealing choices for investors looking to capitalize on the potential growth in 2025.
Amazon’s Echo devices continue to captivate consumers with their innovative features and seamless integration into daily life. With a price target of $275 set for AMZN stock, analysts are projecting a potential 24% upside, making it an attractive investment opportunity as we head into the new year. Following a slight dip to $223 post-Christmas, the current price reflects a discount that investors may want to capitalize on.
In addition to its advanced artificial intelligence-driven product lineup, Amazon is also focusing on optimizing its operational efficiency by streamlining managerial roles. CEO Andy Jassy is reportedly leading an initiative to reduce the number of managers and increase the ratio of contributors to managers by at least 15% by the second quarter of the upcoming year. This strategic move is expected to result in significant cost savings, estimated to reach $3 billion.
Looking ahead, Amazon’s strategic shift towards a leaner corporate structure and a heightened focus on AI-powered contributors could position the company for sustained success in the coming years. By leveraging automation and robotics in its warehouse operations, Amazon aims to enhance efficiency and productivity, ultimately leading to substantial margin growth.
Overall, Amazon’s commitment to innovation, cost optimization, and operational excellence underscores its potential for continued success and value creation for investors. With a forward-looking approach that prioritizes cutting-edge technology and strategic decision-making, Amazon appears poised to unlock significant value in the evolving business landscape.
