As the calendar turns over to 2025, the leading Wall Street firms are releasing their top stock picks for the new year. Typically, these are companies that analysts have an incredible conviction for. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating, depending on the company providing the coverage.
24/7 Wall St. Key Points:
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Goldman Sachs is one of the top investment banks in the world.
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All three major indices posted double-digit gains for 2024.
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Technology and artificial intelligence stocks led the way for the big gains.
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With all the major indices making parabolic moves higher in 2024, we were very interested to see what the top prognosticators across Wall Street think is in store for 2025 as we start the second quarter of the new century. Not surprisingly, many of the firms that we cover are very positive going forward, despite some trepidation after the big moves higher.
The Goldman Sachs Picks
Goldman Sachs Group Inc. (NYSE: GS) is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investing spectrum and is likely to continue for years. For 2025, it remains very positive on large-cap technology leaders, as noted in a recent research report:
As we turn our focus to 2025 with our year-ahead outlook, we frame 10 industry themes for US Internet companies Our investment themes focus on three main areas: 1) identifying the largest secular growth opportunities across the sector (evolving digital advertising industry, blurred lines between advertising and commerce at scale, Cloud computing, local commerce), 2) tackling key sub-sector debates (impact of autonomous vehicles on mobility networks, normalized online travel landscape, widening scope of interactive entertainment companies) & 3) outlining important risk factors for the industry (continued regulatory, political & judicial scrutiny alongside potential disruption from AI).
We were not surprised that Goldman Sachs analysts remain very positive about Large-cap technology giants, a sector that has led the charge higher over the past few years. However, their top pick in the category for 2025 was somewhat of a surprise. They said this about the 2025 top ideas.
From a stock selection standpoint, we see the most compelling risk/reward in companies that have lagged in a robust market environment. As a collective, these companies present a persuasive mix of sustained/strong topline growth, the scope for rising operating margins, and continued commitments to returning capital to shareholders.
Here are the Buy-rated large-cap technology stock ideas at Goldman Sachs and their price targets:
- Uber Technoplogies Inc. (NYSE: UBER). This is the top Goldman Sachs pick, with a $96 target price.
- Alphabet Inc. (NASDAQ: GOOGL). Target price $210.
- Amazon.com Inc. (NASDAQ: AMZN). Target price $240.
- Spotify Technology S.A. (NYSE: SPOT). Target price $490.
- Meta Platforms Inc. (NASDAQ: META). Target price $630.
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