Alphabet vs Meta: Weighing Long-Term Investment Potential in Tech Giants

The Market Leaders in Digital Advertising

When it comes to which share represents a solid long-term investment, the narrative often centers on Alphabet and Meta Platforms—two corporations that have redefined the advertising technology landscape. Their dominance is undeniable: during the third quarter of 2025, Alphabet captured $74 billion in advertising revenue, while Meta accumulated $50 billion. This commanding position underscores their structural advantages in monetizing digital content globally.

Valuation Metrics and Entry Points

For investors evaluating long-term positioning, valuation matters. Alphabet currently trades at a 28x forward earnings multiple, whereas Meta’s valuation sits at a more attractive 22x. Neither represents an excessive premium given the scale and profitability of these businesses. The question of which share offers better value depends on individual risk tolerance and growth expectations, but both multiples suggest reasonable entry points for patient capital.

AI Capabilities as the Growth Engine

The trajectory for both companies hinges on artificial intelligence advancement. Enhanced AI systems enable more precise user targeting for advertisers, which directly translates to improved return-on-ad-spend metrics. This technological moat widens their competitive advantage and creates predictable revenue expansion—a crucial consideration for anyone building a buy-and-hold position in either name.

Dual Ownership vs. Picking a Winner

Here’s the practical reality: the traditional approach of forcing a binary choice may be outdated. A diversified approach holding both Alphabet and Meta over a five-year horizon captures exposure to complementary business models within the same secular trend of digital advertising growth. Both companies benefit from expanding ad spending across search, social, video, and emerging platforms.

The revenue and earnings growth prospects for each remain compelling, supported by structural demand for digital marketing solutions and ongoing AI integration into their ad platforms. Whether your conviction leans toward one or both, the fundamentals suggest neither is a mistake for long-term portfolio construction.