TLDR
- Meta revenue hit $200.97 billion in 2025, up 22%, with a 41% operating margin
- Meta’s AI spending is already boosting ad performance and user engagement
- Alphabet’s Google Cloud surged 63% to $20 billion in Q1 2026, with backlog at $460 billion
- Analysts rate both stocks Moderate Buy — Meta has 38 buys from 47 analysts, Alphabet has 49 from 53
- Meta average price target is around $840, Alphabet’s is around $397
Meta and Alphabet are two of the biggest names in digital advertising. Both are profitable, both are investing heavily in AI, but they offer investors very different things.
Meta had a strong 2025. Revenue rose 22% to $200.97 billion. Operating income came in at $83.28 billion, giving the company an operating margin of around 41%.
Daily active users across Meta’s family of apps reached 3.58 billion in December 2025. Ad impressions grew 12% for the full year, and the average price per ad rose 9%.
That combination of more ads and higher prices is a good sign. It suggests Meta is getting better at both keeping users engaged and helping advertisers get results.
Meta is spending heavily to get there. Capital expenditures reached $72.22 billion in 2025, and total costs rose 24% for the year. The company is still very profitable, but spending is growing fast.
The key point for Meta investors is that the AI spending is already showing up in the numbers. Better recommendations and ad targeting are driving real revenue growth today, not just future promises.
Alphabet’s Cloud Business Is Growing Fast
Alphabet also had a strong recent quarter. In Q1 2026, revenue rose 22% to $109.9 billion. Google Cloud grew 63% to $20 billion, and the cloud backlog reached $460 billion.
In Q4 2025, Alphabet posted operating income of $35.9 billion and a 31.6% operating margin. Search and Other advertising rose 17% to $63.1 billion in that quarter.
Alphabet is more than just a search company now. It has Search, YouTube, Google Cloud, and subscriptions all running at the same time.
Search is still the biggest profit driver. But Cloud is becoming a second major engine, and that changes the story for long-term investors.
The ongoing debate around Alphabet is whether AI will strengthen or weaken its Search business over time. That uncertainty is one reason the stock often looks cheaper than Meta despite strong overall results.
What Analysts Think
Meta currently has a Moderate Buy consensus from 47 analysts. That includes 38 buy ratings, 9 holds, and no sells. The average price target is around $840.
Alphabet has a Moderate Buy consensus from 53 analysts, with 49 buys, 4 holds, and no sells. The average price target sits at around $397.
Both stocks are well-liked by analysts. But Meta has a slightly cleaner buy signal, with fewer hold ratings relative to its total analyst count.
Meta’s margins and AI-driven ad growth make it the stronger near-term earnings story. Alphabet’s diversification across Search, YouTube, and Cloud gives it more ways to grow over time.
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