""Google Cloud ended 2025 at an annual run rate of over $70 billion, representing a wide breadth of customers, driven by demand for AI products.""
""Total costs jumped 40% in Q4, compressing operating margin to 41% from 48% a year earlier, with Reality Labs adding a $6 billion operating loss in Q4 alone.""
""Alphabet deploys $175 to $185 billion in 2026 capital expenditures across cloud infrastructure, Gemini AI, and Waymo, cushioning risk with multiple revenue streams.""
""Meta's $115 to $135 billion in 2026 capex concentrates almost entirely on AI infrastructure to protect its advertising franchise, highlighting the focus on AI advancements.""
Alphabet's growth is driven by Google Cloud, which saw a 48% increase in revenue, while Meta's growth relies on advertising, which rose 24%. Alphabet's diverse revenue streams and significant capital expenditures in cloud and AI contrast with Meta's concentrated investments in AI infrastructure. Meta faces rising costs, compressing margins, and significant losses in its Reality Labs division. Both companies are navigating their unique challenges and opportunities in the evolving tech landscape, with investment choices depending on risk tolerance.
Read at 24/7 Wall St.
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