Meta Platforms, also known as Facebook, reported strong growth in revenue, with a 22% increase to $47.5 billion in the second quarter. The company credits its AI investments for the growth in its advertising business, which saw a 9% increase in price per ad. Operating margin increased from 38% to 43%, and earnings per share rose to $7.14. Meta is set to continue its growth trajectory into the third quarter, with revenue expected to reach $47.5 billion to $50.5 billion. The company’s stock surged after the earnings report, hitting an all-time high.

In the era of AI, Meta has excelled in growing its advertising business while investing in AI for emerging businesses like smart glasses. The company made a significant acquisition of data-labeling start-up Scale AI for $14.3 billion to further its AI investments. Meta’s aggressive approach to AI, compared to Alphabet’s more cautious strategy, has paid off with consistent growth. Overall, Meta’s growth in ad performance and AI investments position it as a strong competitor in the market.

Compared to Alphabet, Meta has outgrown its rival in recent quarters due to its AI advancements. Both companies have strengths in AI, but Meta’s aggressive approach has led to faster growth. Meta’s strategic investments in AI, such as its ad-recommendation engine and generative AI ad creation features, have proven to be beneficial for its business. Investors may find Meta to be a better buy than Alphabet due to its growth potential and alignment with core business strategies.

Read more at Nasdaq: Meta Just Crushed Earnings. Is It a Better Buy Than Alphabet?