"Both Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) sit near the center of two big investor debates: how quickly AI (artificial intelligence) spending is rising and which platforms can turn that spending into durable, profitable growth. But which of these two stocks is a better buy today? This is a timely question, as social media specialist Meta is scheduled to report fourth-quarter results later this month, and online search giant Alphabet is scheduled to report its results in early February."
"Alphabet grew revenue 16% year over year in the third quarter of 2025 to $102.3 billion. Of course, the primary driver for Alphabet's overall top line remains its core ad-supported Google services, where search and YouTube ads each delivered double-digit growth in Q3. But what's powerful about Alphabet's business is that it boasts an important and fast-growing non-advertising component: Google Cloud. Alphabet's cloud computing revenue rose 34% year over year to about $15.2 billion in the quarter."
Investor debate centers on how quickly AI spending is rising and which platforms can convert that spending into durable, profitable growth. Meta currently trades at a significantly lower valuation than Alphabet. Meta reported meaningfully higher revenue growth in the most recent quarter compared with Alphabet. Alphabet grew revenue 16% year over year to $102.3 billion in the third quarter of 2025, driven mainly by ad-supported Google services. Google Cloud is a fast-growing non-advertising segment, with cloud computing revenue rising 34% year over year to about $15.2 billion in the quarter. The valuation choice hinges on Meta's lower price versus Alphabet's diversification.
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