Meta Closes Gap on Alphabet's Ad Revenue, But Wall Street Favors Google
In Q2 of 2026, Meta reported $59.36 billion in ad revenue, a 27% increase year-over-year, while Alphabet’s 'Google Search & other' segment generated $63.27 billion, up 17%. The gap between the two companies is now $3.9 billion compared to nearly double that last year. Analysts note Meta's strong performance in capturing new digital ad dollars and leveraging AI for improved targeting has driven its growth. Despite this progress, Wall Street remains more bullish on Alphabet stock (GOOG). This preference stems from Alphabet’s diversified revenue streams, including Google Cloud, which saw $24.8 billion in revenue—a 82% increase—compared to Meta's lack of a comparable cloud segment. While Meta is expanding its Business Agent platform and introducing paid plans across messaging services like WhatsApp and Instagram, investors are favoring Alphabet for clearer AI monetization pathways. Meta’s stock has declined over the past year while Alphabet shares have risen. Analysts on TipRanks rate Alphabet with 38 'buy' ratings and an average target of $752.61.
Topics: ads revenue AI impact Alphabet Meta Wall Street sentiment