$Meta Platforms(META.US) likely to follow $Alphabet - C(GOOG.US)’s trajectory after missing estimates last week - down -10% after the print, and then a quick recovery (+5% so far) as investors came to realize the results adjusted for one time items weren’t bad, and the slightly negative near-term guidance was management taking its usual conservative stance. The main difference between the two businesses - GOOG revs come mostly from search, META mainly from advertising - are punctuated by GOOG having a surging cloud business and highly popular chat bot (Gemini), while META has neither.
GOOG trades at 17x 2026 EV/EBITDA and is growing long-term revs at +20% CGR; META trades at an 11x EV/EBITDA and is growing long-term revs at +18% CGR. So while META is cheaper, GOOG likely has the better business.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
