"Investors have no complaints about the monster success of these two businesses. Meta Platforms dominate the tech landscape, and their products and services have billions of users. They're investing aggressively in artificial intelligence (AI) capabilities, and it's hard to argue with their remarkable financial successes. It's no surprise that shares in each of these two businesses have performed well over the past decade. But which of these " Magnificent Seven" stocks is the better long-term play? Is one better than the other?"
"There's no reason investors can't own both of these companies in their portfolios, with the intention of holding them for at least the next five years. Alphabet shares trade at a forward price-to-earnings ratio (P/E) of 28, while Meta's valuation is cheaper at a multiple of 22 bases on estimates. These valuations are extremely reasonable for two of the most outstanding businesses in the universe."
Alphabet and Meta dominate global digital advertising, generating $74 billion and $50 billion in digital ad revenue in Q3 2025 (ended Sept. 30), respectively. Both platforms have billions of users and are investing aggressively in artificial intelligence capabilities. Alphabet trades at a forward P/E of 28, while Meta's forward multiple is about 22 based on estimates. Those valuations are reasonable for two top-tier businesses. AI-enhanced ad targeting should support continued market growth. Rising revenue and profit trajectories should drive shareholder returns, and investors can hold both companies for multi-year horizons.
Read at The Motley Fool
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