Stocks
Meta and Alphabet Deliver Strong Growth Despite Investor Skepticism
Meta and Alphabet have released their Q2 2026 reports, which show impressive growth but underwhelming investor response. Meta's ad engine grew 27% year over year, while Google Cloud accelerated to 82% growth.
The numbers are striking, given that both companies trade at relatively cheap valuations: Meta near 22 times earnings and Alphabet at roughly 17 times. However, Meta's revenue of $60.80 billion was slightly below expectations due to $2.40 billion in legal charges and $1.18 billion in severance tied to 8,000 job cuts.
Alphabet, on the other hand, blew past estimates with a revenue of $119.80 billion and EPS of $9.11. Search grew 17%, YouTube ads 13%, and Cloud hit $24.77 billion.