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Alphabet vs. Meta Platforms: Is One the Better Long-Term Play?
The Motley Fool· 2026-01-09 03:40
Core Viewpoint - Alphabet and Meta Platforms are leading companies in the tech landscape, both experiencing significant financial success and investing heavily in artificial intelligence capabilities [1] Company Performance - Alphabet's shares have shown strong performance with a current price of $325.44 and a market cap of $3.9 trillion, trading at a forward P/E ratio of 28 [2][3] - Meta Platforms has a current price of $646.50 and a market cap of $1.6 trillion, with a lower forward P/E ratio of 22, indicating a cheaper valuation compared to Alphabet [4][3] Digital Advertising Revenue - In Q3 2025, Alphabet generated $74 billion in digital ad revenue, while Meta generated $50 billion, making them leaders in the global digital advertising market [4][5] - The growth of AI tools is expected to enhance advertising effectiveness, contributing to continued revenue growth for both companies [5] Investment Outlook - Both companies are considered strong long-term investments, with the potential for rising revenues and profits, benefiting shareholders over the next five years [3][5]