Meta Poised to Overtake Google Search in Ad Revenue by Year's End

Shares of Alphabet's Google (GOOGL) sank over 2.6% on Monday, August 31, as research firm Bernstein predicted that Meta Platforms (META), Facebook's parent company, could surpass Google Search in ad revenue by the end of this year.

Bernstein analyst Mark Shmulik pointed to artificial intelligence (AI) as a key factor driving Meta's ad growth. According to Shmulik, AI is helping Meta increase user engagement and deliver more targeted ads.

Meta generated approximately $59.36 billion in ad revenue in its second quarter, while Alphabet reported $63.27 billion from Google Search and other revenue in the same period. However, Meta's ad business grew roughly 27% year-over-year, outpacing Google's 17% growth.