Investors today want big upside potential, but they also want safety in the technology sector, that means looking for firms that have a clear edge, giant user bases, and the cash flow to keep reinventing themselves.
Meta Platforms and Alphabet fit the “must-watch” light in any market. They are more than just old-timers; they are core architects of the AI surge that is touching every corner of every industry. The more their blueprints become bigger and sharper, the more the online economy hums.
This creates a self-feeding loop: better AI decides what content is most engaging, keeps people scrolling, and that extra attention fuels even bigger ad budgets. Over the past year, Meta’s revenue climbed 22%, adjusted earnings per share shot up 38%, and the share price gained 30%, easily outpacing the Nasdaq Composite.
The capital spending plan is even more eye-popping, the company expects to invest between $66 billion and $72 billion in 2023 alone, and the 2028 forecast could reach a cumulative $600 billion, according to CEO Mark Zuckerberg. This reveals not just ambition, but a steadfast belief that the next digital era, powered by AI, will be won by whoever spends most decisively today.
Analysts highlight that Meta plans to keep capital spending high, calling it a long-term bet and not a risky gamble. The idea isn’t to ride short-term trends but to build the right infrastructure and models to serve billions around the world.
This in turn protects Meta’s market share and keeps cash coming in. With anticipated annual earnings anticipated to grow 17% a year, and a forward price-to-earnings ratio currently at 27, the stock looks attractive to investors willing to hold for a few years, as the growth argument lines up with a valuation that still feels reasonable.
The rapid progress in AI is not just benefiting consumers, but also enterprises. Google Cloud, which powers advanced business workloads, delivered 32% revenue growth last quarter and boasts a growing $106 billion backlog with several new $1 billion+ deals in 2025 alone.
With rising AI adoption, Alphabet has raised its capital expenditure forecast to about $85 billion for this year, preparing for more growth in 2026 as well.
The key takeaway for investors is that both Meta Platforms and Alphabet are using their market leadership and cash flow to build lasting technological and competitive trenches. Their relentless reinvestment into next-generation AI and cloud infrastructure ensures they remain central to the digital economy’s future growth.
