Wall Street loved Google's earnings, and hated Meta's, even though the latter's core business was more impressive. The difference is that Google is monetizing its investments now (and it might be all Anthropic).
Google Earnings, Meta Earnings
So, here’s a question — why did Wall Street cheer Google’s earnings but react so negatively to Meta’s, even though Meta’s core business actually looked better? According to Ben Thompson in Technology, it all comes down to where these giants are investing. Google is already monetizing its big bets — think cloud, AI, and even Anthropic — showing they’re turning investments into revenue now. Meanwhile, Meta’s core ad business is solid, but investors are wary of its heavy spending on the metaverse and new initiatives, which might not pay off anytime soon. It's like Google’s playing the long game with a clear revenue path, while Meta’s piling into uncertain territory. As Thompson points out, the market favors companies that can show current returns, not just future potential. So here’s the thing — if Meta doesn’t start showing more immediate gains, will its long-term vision still matter when Wall Street’s looking for quick wins?
Audio Transcript
Wall Street loved Google's earnings, and hated Meta's, even though the latter's core business was more impressive. The difference is that Google is monetizing its investments now (and it might be all Anthropic).
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