In 2025, tech stocks are poised to continue surging in the markets. Most experts are expecting Adobe (ADBE) and Meta Platforms (META) to lead that charge. Both companies have had opposing 2024s, with each stock performing differently on the markets. However, investors are bullish on both companies entering the new year, but why?
Why Investors are Bullish on Adobe Stock (ADBE)
Adobe is one of the world’s largest technology companies, offering cloud-based creativity software. Its cloud tools and software are a staple in creativity for any business. As for its stock, ADBE was not a premier choice in 2024, falling 24% in price-per-share in the last calendar year. Competitors like Canva and Figma flourished in 2024, challenging Adobe’s creative dominance. Thus, the stock underperformed, according to experts.
Investing in ADBE in early 2025 is more-so a strategic buy-the-dip move. While the AI surge is also challenging Adobe technology, it is still far from coming close to the final product users can get out of executing properly on Adobe products. Photoshop and Premiere are still top choices for artists and businesses, as can be seen by its $21.5 billion in annual revenue. Furthermore, Adobe converts over 36% of that revenue into free cash flow and continues to update its products to fit consumer needs.
While the hype is around AI creative development technology like GROK and ChatGPT, investors shouldn’t count out Adobe yet. Indeed, Adobe is expected to rebound from its 2024 slump next year, making it a contender for one of the more interesting stock options to invest in.
On the other hand, Meta is a tech stock that flourished in 2024 and expects continued success in 2025. The company is up over 70% year-to-date, with price predictions continuing to rise ahead of next year. As a Mag-7 stock, Meta is a premium option for investors, expected to continue its recent growth for further gains.
Analysts at Canaccord Genuity recently upped their price prediction for Meta stock to $730 from $700. The analysts said key growth drivers for Meta cited were artificial intelligence and business messaging. Meta is a growing leader in the AI industry, putting plenty of investments into Meta AI, its newest tech innovation
Furthermore, the Augmented Reality (AR) market is making waves in the tech market. According to market analysts, the AR market has a market size of $42.48 billion as of 2024. However, that emerging business is expected to soar over the next five years, growing at a compound annual growth rate of 42.36%. Meta expects to be at the forefront of this market as well, meaning the company may lead in a $248.38 billion industry by 2029 if all goes to plan. This only means further growth for investors’ shares in META stock.
Both Adobe and Meta stock are potential top investor options in the tech industry for opposite reasons. However, in the endgame of profit, both could reap great rewards.
