The Motley Fool·2025-12-08 09:50Meta Platforms - Meta Platforms owns three of the four most popular social media networks, providing insights into consumer preferences that enhance content suggestions and advertising [4] - The company is recognized as a digital advertising leader, with expectations of increasing market share due to its dominance in social media and investments in artificial intelligence [5] - In Q3, Meta reported a revenue increase of 26% to $51 billion and a GAAP net income increase of 20% to $7.25 per diluted share, although stock prices fell due to anticipated larger capital expenditures in 2026 [7] - Wall Street forecasts a 17% annual earnings growth for Meta over the next three years, supported by a projected 14% annual growth in ad tech spending through 2030, making the current valuation of 30 times earnings reasonable [8] - Notable hedge fund managers have increased their stakes in Meta, with significant purchases from Stanley Druckenmiller, Israel Englander, Ken Griffin, and Philippe Laffont [9] Alphabet - Alphabet is the largest ad tech company globally, leveraging its capabilities through Google Search and YouTube, while adapting to threats from generative AI tools [10] - The company has introduced new advertising tools like AI Max for search campaigns, enhancing its ability to target and engage customers [11] - Alphabet's Google Cloud is the third-largest public cloud provider, gaining market share due to its AI expertise, and has been recognized for its capabilities in AI application development [12] - In Q3, Alphabet reported a revenue increase of 16% to $102 billion and a GAAP earnings increase of 35% to $2.87 per diluted share, driven by strong demand for AI infrastructure [13] - Despite a 70% year-to-date increase in share price, Wall Street expects Alphabet's earnings to grow at 16% annually over the next three years, making the current valuation of 32 times earnings still tolerable [14]