After a Decade Neck-And-Neck With Facebook, Google Is Finally Winning

After a Decade Neck-And-Neck With Facebook, Google Is Finally Winning
Andrew Rummer

about 2 years ago1 min

Mentioned in story

Meta stock tumbled 20% in pre-market trading on Thursday after its main Facebook app reported the first decline in user numbers in its 18 year history.

For years, Facebook has vied with Alphabet’s Google for supremacy in the fast-growing market for digital advertising. According to eMarketer, Facebook took 24% of all global spending on digital ads last year while Google took 29%. This dominance has led to the pair being dubbed a “duopoly” – particularly by the media brands who’ve lost ad dollars to them.

The chart above shows how shares in Meta and Alphabet tracked each other pretty closely since Meta’s 2012 initial public offering (IPO). 

As of last year, $100 invested in each stock in 2012 would have grown to about $1,000. But following earnings updates this week from both companies, their performance has finally broken apart. The dotted blue line shows where Meta stock is likely to open on Thursday, based on pre-market trading. What was worth $1,000 a year ago is now only worth about $675.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG