Meta Platforms (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOGL) have become two of the biggest investors in artificial intelligence, but their latest results pose an uncomfortable question: how much of that spending is already producing returns? Both giants are growing advertising revenue, and yet their cash flows tell a less straightforward story, which is significant for investors because their valuations are remarkably close. Yahoo Finance's latest available valuation data places Meta at 22.08 times forward earnings and Alphabet at 22.83 times. The numbers show that investors are assigning roughly the same earnings multiple to two companies making very different bets on AI infrastructure. Let's take a deeper look at this.
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