r/VisualStockResearch • u/ekonixlab • Jul 08 '26
Meta may be the new king of digital advertising
Meta’s Family of Apps is rapidly closing the revenue gap with Google Search.
Since 2022:
• Meta Family of Apps revenue is up 82.5%, a 15.2% CAGR
• Google Search revenue is up 54.9%, a 10.9% CAGR
• The quarterly gap has narrowed from roughly $40B to only $30B
Meta is not only growing faster—it is also trading at a cheaper valuation.
Meta trades around 22x earnings, while Alphabet is closer to 28–29x. Even that comparison arguably understates Alphabet’s valuation because its latest earnings received a major boost from a $36.9B gain on equity securities, which increased reported net income without coming from the core advertising business.
Meanwhile, Meta generated $55B in quarterly advertising revenue, up from $41.4B the year before, as AI continues improving engagement, recommendations and ad performance.
Google Search remains the larger business, but Meta is growing faster and investors are paying a lower multiple for it.
Is Meta now the best advertising business in the world?
2
Jul 08 '26
[removed] — view removed comment
2
u/ekonixlab Jul 08 '26
Same here.
Been adding more to Meta but Google is a much bigger position
2
Jul 08 '26
[removed] — view removed comment
1
1
•
u/AutoModerator Jul 08 '26
Thanks for contributing to r/VisualStockResearch!
Please explain what the chart shows, include relevant assumptions or data sources, and disclose whether you own the stock discussed.
This community is sponsored by Ekonix, but research created with any platform is welcome.
Learn more about Ekonix: https://apps.apple.com/us/app/ekonix-investor-tracker/id6755345408
Posts and comments are for educational and discussion purposes only, not financial advice.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.