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Alphabet's Cloud and AI growth offsets ad revenue slowdown, boosting margins above META's.

Market News
03 Nov 2026, 11:54 WIB
Seeking Alpha
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Bullish
Alphabet's Cloud and AI growth offsets ad revenue slowdown, boosting margins above META's.

Alphabet Inc. is experiencing a slowdown in ad revenue growth, losing market share to META. However, its Cloud segment is thriving with a 103% year-over-year revenue increase, driven by diverse offerings like TPU hardware and AI development tools. This growth has led to a strong incremental operating margin of 37%, significantly higher than META's 17.4%, despite high capital expenditures and negative free cash flow. The recent stock price drop is seen as an overreaction, presenting a buying opportunity as Cloud and AI investments support long-term profitability.

Alphabet Inc. holds a market cap of $3.43 trillion and shows steady investor interest with 73% buy orders on Pluang as of Nov 03, 2026 17:11 WIB. Despite the recent stock price rise of 0.11% to USD 279.30, the platform data reveals a strong volume of 65,695,032 shares traded, indicating active engagement. Meanwhile, Meta Platforms, with a market cap of $1.57 trillion, sees mostly sell orders at 95%, reflecting a different investor sentiment on Pluang at the same time.

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