"Both tech companies are funding massive AI buildouts and could see strong long-term returns from these investments. But one stock edges out the other in a head-to-head comparison. Both Alphabet and Meta Platforms 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?"
"Alphabet: The more diversified business 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."
Alphabet and Meta Platforms are investing heavily in AI, creating potential for strong long-term returns. Investors debate AI spending pace and which platforms can convert that spending into sustainable, profitable growth. Meta will report fourth-quarter results later this month, and Alphabet will report in early February. Alphabet grew revenue 16% year over year in the third quarter of 2025 to $102.3 billion, driven by ad-supported Google services including search and YouTube. Google Cloud grew 34% year over year to about $15.2 billion, outpacing Google services' 14% growth and becoming a meaningful part of the investment thesis. Meta trades at a lower valuation but has a less diversified business.
Read at The Motley Fool
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