Yesterday, two of the biggest tech giants in the AI boom reported their latest earnings.
Google parent company Alphabet Inc. (Nasdaq: GOOG) and Facebook owner Meta Platforms, Inc. (Nasdaq: META) posted Q1 2026 results with some striking similarities, including a surge in capital expenditures (capex) and strong revenue growth.
But this morning, Meta’s stock is plunging, while Google’s is jumping. Here’s why.
Google’s Q1 results give investors confidence in its AI strategy
The way investors are reacting so differently to the two AI giants’ earnings results this morning makes the quarterly reports feel like A Tale of Two Cities, sorry, Tech Giants.
For Google, it seems like the best of times, and for Meta, not so much.
Yesterday, Google reported that for its most recent quarter, it achieved $109.9 billion in revenue, an increase of 22% and a record for the company. On top of that, the company reported an earnings per share (EPS) of $5.11, an increase of 82%.
Google’s Search revenue also climbed 19%. This is particularly notable because many industry watchers have long debated whether the rise of chatbots will eat into the business models of traditional search engines.
