The air, as always, smells of money. And algorithms. One observes the relentless march of artificial intelligence, this secular trend they speak of, and two names invariably surface: Alphabet (GOOGL 0.79%) (GOOG 0.73%) and Meta Platforms (META +1.72%). Both, let us concede, are behemoths. Titans. Though one suspects, beneath the polished chrome and carefully curated press releases, a distinct whiff of desperation.
The question, naturally, isn’t simply which will enrich you. It’s at what cost? A bargain with the digital devil, perhaps? One finds oneself contemplating the long-term implications, the erosion of privacy, the relentless pursuit of engagement… but then, one remembers the dividends, and the philosophical quandaries fade somewhat. A weakness, I confess.
A Most Peculiar Proposition
Analysts, those oracles of the obvious, predict a 14.4% revenue increase for Alphabet and a rather more ambitious 21.3% for Meta in the coming year. Such numbers, of course, are merely projections, shimmering mirages in the desert of financial forecasting. Still, the operating margins are… intriguing. Alphabet at 31%, Meta a slightly more robust 40%. One begins to suspect a pact with some unseen force, a benevolent (or perhaps merely indifferent) entity guiding their quarterly reports. Or, perhaps, it’s simply good management. A disappointingly mundane explanation.
Billions of users, naturally, are the key. A captive audience, willingly surrendering their data in exchange for… what exactly? Cat videos? Personalized advertisements? The illusion of connection? It’s a network effect, they call it. A digital flywheel, spinning ever faster, drawing in more and more souls. Disruption, in such a landscape, seems… unlikely. The inertia is simply too great. Like trying to stop a locomotive with a feather duster.
And the capital expenditures! Vast sums poured into artificial intelligence, a desperate attempt to stay ahead of the curve, to anticipate the next digital whim. It’s a bit like a man frantically polishing his carriage while the world has already embraced the automobile. A futile gesture, perhaps, but a necessary one for those clinging to the reins of power.
Valuations & Vanities
Over the past five years, these two have, predictably, trounced the S&P 500. A triumph of scale, of marketing, of sheer, unadulterated momentum. But valuations, one observes, are not entirely unreasonable. Alphabet trades at a forward P/E of 29.5. Meta, a slightly more attractive 20.8. A bargain, one might even say. Though, as a wise man once observed, the price of everything is memory.
Will these companies be wonderful portfolio additions over the next five years? Possibly. Probably. One hesitates to make definitive pronouncements. The future, after all, is a fickle mistress. But if one is inclined to gamble—and, let us be honest, investing is nothing more than a sophisticated form of gambling—these two represent a relatively safe bet. A comfortable, predictable descent into the abyss. One can almost smell the money.
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2026-01-24 16:02