Forbesยท2025-10-30 12:30Core Insights - Alphabet (Google) and Meta Platforms experienced contrasting stock reactions after their Q3 earnings reports, despite both being significant players in the AI sector [2]. Alphabet (Google) Summary - Google stock increased by 8% in after-hours trading, driven by a strong Q3 performance with revenue of $102.4 billion, exceeding Wall Street's expectations of $99.85 billion [3]. - The revenue growth was significantly supported by Google Cloud, which reported a 34% increase in revenue to $15.2 billion [3]. - Adjusted earnings per share (EPS) were $2.87, surpassing the projected $2.27 and the previous year's EPS of $2.12 [3]. Meta Platforms Summary - Meta Platforms' stock fell by 8% in after-hours trading following disappointing results, reporting Q3 revenue of $51.24 billion and EPS of $1.05 [4]. - Although revenue slightly exceeded expectations of $49.6 billion, the EPS missed projections of $6.72, primarily due to a one-time tax-related charge [4]. - The decline in stock price may also reflect profit-taking by investors after pre-earnings interest [4]. Comparative Analysis - Despite Google's strong quarterly performance, there is a preference for Meta based on its stronger underlying revenue growth, better operating margins, and relatively lower valuation compared to Google [5]. - Meta's latest quarterly revenue growth was 26%, compared to Google's 16% [6]. - Meta's Last 12 Months (LTM) revenue growth was 15.2%, ahead of Google's 13.6% [6]. - Meta demonstrated stronger profitability with an LTM margin of 42.6% and a 3-year average margin of 34.6% [6].