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AI-Race-Based Dilution: Why Meta Is More Dangerous Than Alphabet
['Alex Sirois', 'Wed', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
Quick ReadMeta (META) saw operating margin collapse from 43% to 31% while Alphabet (GOOGL) expanded margins, powered by Google Cloud growing 82%.
Meta (NASDAQ: META) and Alphabet (NASDAQ: GOOGL) reported Q2 2026 earnings this summer with opposite profitability trajectories.
Google carries the headline dilution, but Meta faces the deeper structural threat.
Alphabet moved the opposite direction: revenue reached $119.80B and operating margin expanded to 34%, powered by Google Cloud growing 82% to $24.8B.
Pichai pointed at revenue already flowing: "Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth."