Alphabet vs. Meta Platforms: Which AI Stock Will Make You Richer?
Key Points
Alphabet and Meta have billions of users that support their powerful network effects.
Investors will appreciate their double-digit revenue growth and strong profits.
Both stocks trade at compelling valuations, but Meta is much cheaper right now.
- 10 stocks we like better than Alphabet ›
When it comes to the ongoing artificial intelligence (AI) secular trend, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and Meta Platforms (NASDAQ: META) are probably two companies that investors think about. Both internet giants have their merits.
But which of these AI stocks will make you richer?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Alphabet.
Betting on both stocks might be the best move
Analysts expect Alphabet and Meta to grow their revenues by 14.4% and 21.3%, respectively, year over year in 2025. Alphabet's Q3 operating margin was 31%, while Meta's was even better at 40%. It's hard to argue with the belief that owning both stocks might be the best move.
It helps their competitive positions that Alphabet and Meta have billions of users accessing their various platforms. Besides the massive advantage that being able to collect and leverage data provides, they possess powerful network effects. This means there is a very low probability that they will get disrupted anytime soon.
What's more, Alphabet and Meta are spending huge sums on AI-related capital expenditures in an effort to better serve their users and ad customers.
Take advantage of compelling valuations
Both Alphabet and Meta have crushed the S&P 500 in the past five years (as of Jan. 20). However, they don't trade at expensive valuations today.
Investors can buy the Google parent at a forward price-to-earnings (P/E) ratio of 29.5. The social media juggernaut's stock, on the other hand, goes for a cheaper forward P/E multiple of 20.8.
Over the next five years, these two companies have what it takes to be wonderful portfolio additions.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $450,525!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,107!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 24, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool has a disclosure policy.
Recommended Articles
