Mega-cap growth stocks represent publicly traded companies with a market value exceeding $10 billion. Often referred to as large-cap or blue-chip stocks, they are stable entities in the stock market. While smaller, high-growth companies may appear more exciting, understanding large-cap stocks can offer profitable opportunities. These substantial firms offer lower volatility compared to smaller counterparts, contributing to portfolio diversification while delivering steady share price growth.
Mega-caps are safer due to their established status, competitive advantages, and reliable profits, making them resilient even in bear markets. As a result, they tend to outperform smaller stocks during market downturns.
With that said, here are three mega-cap growth stocks to buy that you shouldn’t miss out today.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) stock is poised for future growth, though temporary price declines may occur. These dips could offer favorable entry points for investors. Despite challenges, Meta’s artificial intelligence (AI) powered social media apps are expected to provide consistent revenue.
In 2023, Meta Platforms is focusing on efficiency, leading to a 7% stock increase after beating Q2 earnings expectations. Cost-cutting and refocusing efforts have proven successful, with $32 billion quarterly revenue and $2.98 earnings per share, surpassing estimates. Q3 revenue guidance of $32 billion to $34.5 billion is also positive. If Meta Platforms sustains its profit-oriented growth strategy, it has the potential for significant gains over the next 5 to 10 years.
The company strategically integrated generative AI features into Instagram Reels and has ambitious plans to incorporate AI across its products. Despite potential challenges, Meta Platforms’ new Threads app experienced user sign-ups but also saw some users leaving.
Alphabet (GOOG, GOOGL)
Alphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) is a leading tech conglomerate known for its search engine Google. GOOGL stock is up 45.38% year-to-date (YTD) at $129.56. With 47 analysts predicting a 12-month median-high price range of $150 to $200. Google benefits from a growing tech market projected to reach $11.47 trillion by 2026, with a 7.75% CAGR. Its diverse offerings, from EVs to entertainment, position it for growth across sectors.
Currently, OpenAI and ChatGPT dominate, but Alphabet’s Bard could gain with its Google-linked data mine. GOOG’s valuation aligns with budget AI investing, with a fair value of $147.50, compared to its $128.54 trading price.
Alphabet’s YouTube, a vast source of free knowledge, can combat inflation through increased engagement and ad revenue. Solid financial growth, EBITDA and consistent profitability make the company a promising choice for mega-cap stocks to buy.
Amazon (AMZN)
Amazon (NYSE:AMZN) is a US tech giant, surging 61.28% YTD. Analysts have mixed opinions, with price targets from $89.78 to $163.24. Amazon’s prime growth comes from the innovative Buy with Prime program, converting members into customers on e-commerce platforms.
Amazon delivered impressive Q2 results, surpassing EPS and revenue estimates. Amazon Web Services (AWS) and advertising revenues also exceeded expectations. Moreover, the company strategically enters the 5G arena through AWS and Project Kuiper, poised for long-term growth and capitalizing on 5G potential.
Amazon’s Q2 results marked its largest earnings beat since Q4 2020, driven by cost-cutting measures. AMZN stock surged 8%, adding to its YTD gains. However, compared to META’s 141% YTD rise, Amazon still lags. Despite recent gains, Amazon’s stock is 25% below its July 2021 peak, presenting an undervalued buying opportunity.
On the date of publication, Chris MacDonald has a LONG position in META, AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
