Alphabet vs. Meta Platforms: Which Is the Better AI Advertising Stock to Own for the Next 5 Years?
AI has become a powerful tool for Alphabet and Meta to optimize ads to the right viewers.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) probably have more in common than you might think. Both are members of the rarified trillion-dollar club in market capitalization. They are members of the Magnificent Seven group of stocks that have grown so much in recent years that they account for more than a third of the S&P 500 index.
And finally, both companies have powerful advertising businesses that account for the lion's share of their revenue. Alphabet made $81.63 billion in the second quarter from advertising, which accounted for 69% of the company's overall revenue. Advertising is even more important for Meta, which brought in $59.36 billion in ad sales, making up nearly 98% of the company's total revenue.
Details
Alphabet and Meta Platforms devote significant energy and resources to advertising, using artificial intelligence to optimize their advertising engines and make them more effective and profitable. Which of these AI advertising stocks is the best to hold over the long term?
Source
Originally published at www.fool.com.