Meta Ads and Alphabet Cloud: Two Stocks to Hold for the Decade

Meta Platforms (META) and Alphabet (GOOGL)(GOOG), both members of the Magnificent Seven, have seen their stocks dip after reaching record highs. META closed at $777.59 on September 24, its highest close since September 2025, but has since fallen to around $731. GOOGL is also down from its peak, currently trading at about $351, which is roughly 13% under the record close of $402.62 it set on May 13.

Both companies grew revenue over 20% in their last quarter, a significant feat for their size. However, for buy-and-hold investors, a dip only matters if the business can continue to grow through the end of the decade. The author believes each company has one business that can do it, and highlights Meta's ads business and Alphabet's Google Cloud.

Meta's advertising revenue grew 27% in the second quarter, with ad impressions climbing 14% and average price per ad rising 12%. The company's AI investments have also paid off, with upgrades to its AI models raising conversions on Facebook by 15.7%. However, Meta's profits could shrink if ad growth continues to slow while spending climbs.

Alphabet's Google Cloud segment has seen impressive growth, with revenue jumping 82% from the year-ago quarter to $24.8 billion in Q2. Its operating income more than tripled to $8.8 billion, and its backlog is already under contract, providing a strong foundation for future growth.

The author believes both companies' stocks are fair at current prices, with Meta trading around 21 times earnings and Alphabet trading around 23 times earnings. However, they caution that heavy spending by each company could make the next few quarters rocky.