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Meta Beats Google: Why Meta Stock May Outperform in 2025

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  Published in Stocks and Investing on Tuesday, December 16th 2025 at 12:50 GMT by Forbes

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Meta Beats Google: Why the Meta Stock Might Be the Smarter Pick for 2025
Summarized from a Forbes piece dated December 15 , 2025

In a sharp turn from the more conventional wisdom that the tech behemoth Alphabet is the safer bet, the Forbes article “Why Meta Stock Is a Better Investment Than Google” argues that Meta’s (formerly Facebook) share price is poised for a stronger upside. Drawing on recent quarterly reports, valuation multiples, and macro‑level trends, the author contends that Meta’s strategic pivot to the metaverse, coupled with its disciplined cost management and a more attractive dividend policy, places it ahead of Google for long‑term investors. Below is a deep dive into the key points that make up the article’s thesis.

1. Revenue Streams: Advertising Dominance + Emerging Metaverse

Meta’s current revenue engine is still largely advertising, but the firm has been allocating a disproportionate amount of capital into its “Metaverse” platform. The Forbes piece cites Meta’s Q3 2025 earnings, where ads accounted for roughly 78 % of revenue while the “Other” segment (VR/AR, Instagram commerce, WhatsApp) grew 22 % YoY. By contrast, Alphabet’s ad business, still dominated by Google Search and YouTube, has been plateauing. The article argues that Meta’s incremental ad spend is being captured in the Metaverse’s immersive advertising opportunities, where users spend longer periods and are more engaged.

The article also highlights Meta’s push into virtual events and “virtual real estate,” which the author expects to be a key driver of revenue diversification in the next five years. The Forbes link “Meta’s Metaverse Roadmap” elaborates on the company’s plans to build a “social VR economy” that will tap into digital goods and services.

2. Cost Efficiency & Cash Flow

Meta’s operating expenses have been steadily shrinking in absolute dollars thanks to its aggressive workforce cuts and a sharp focus on automation. The Forbes article notes that Meta’s free cash flow per employee jumped from $75 k in 2019 to $162 k in 2025—a figure that the author says positions Meta as one of the most efficient tech firms in the market. Alphabet, on the other hand, is still allocating substantial cash toward R&D, especially for AI and quantum computing, and has a higher operating margin per employee.

Yet, the author argues that Meta’s lower leverage and higher free‑cash‑flow yield give it a buffer against regulatory crackdowns or sudden ad revenue dips. Meta’s debt‑to‑EBITDA ratio sits at 0.8× versus Alphabet’s 1.3×, a difference the Forbes article highlights as a significant advantage.

3. Dividend & Shareholder Return

A key point in the article is Meta’s evolving capital allocation strategy. In Q3 2025, Meta announced a $3 billion dividend that increased its dividend yield to 2.4 %. Alphabet has historically not paid a dividend, and that stance is often viewed as a drawback by income‑seeking investors. The article references a Forbes “Dividend Outlook” series to suggest that Meta’s dividend could become a core part of total shareholder return.

4. Valuation Multiples & Growth Prospects

Meta’s P/E ratio, at around 22×, is slightly lower than Alphabet’s 27×. The article argues that Meta’s P/S ratio (10×) also undercuts Alphabet (15×), reflecting a market consensus that Meta’s stock is cheaper relative to its revenue base. In the same vein, the article cites a “Meta vs. Google Valuation” comparison chart that underscores Meta’s more aggressive upside potential given its high growth expectations in the VR segment.

5. Regulatory Landscape

Both firms face scrutiny—Google from antitrust regulators over its dominance in search and digital advertising; Meta from privacy watchdogs and lawmakers concerned about data handling on Facebook and Instagram. The author points out that Meta’s new “Privacy by Design” framework, announced in 2024, is expected to mitigate regulatory risk, whereas Google’s “AI ethics” framework has yet to be fully adopted across its platforms. A link to a Forbes “Antitrust Outlook” article illustrates the potential for regulatory fines to impact each firm’s bottom line differently.

6. Risks & Counter‑Arguments

The Forbes piece does not shy away from highlighting risks. Meta’s metaverse gamble is still high‑cost, high‑uncertainty, and could backfire if consumer adoption stalls. Meanwhile, Alphabet’s dominance in search could face unexpected disruption if an emerging competitor gains traction. Privacy concerns could also erode Meta’s user base and, by extension, its ad revenue. The article advises a cautious approach, recommending investors weigh Meta’s upside against the inherent volatility of a “new‑economy” asset.

Bottom Line

The article concludes that while Alphabet remains a solid juggernaut in the tech space, Meta’s aggressive pivot toward the metaverse, stronger cash flow metrics, dividend potential, and a comparatively lower valuation make it a compelling bet for growth‑oriented investors looking for a more favorable risk‑return profile. It urges readers to keep a close eye on the upcoming earnings releases and the performance of Meta’s Meta Quest and Horizon Worlds platforms, which will serve as barometers for the company’s long‑term strategic shift.

By weaving together financial data, strategic commentary, and a series of Forbes link‑ins for deeper context, the article provides a comprehensive rationale for why Meta could outperform Google in the coming years, provided that the company can translate its ambitious vision into sustained revenue growth.