Google vs Facebook. Which stock wins?

There is nearly endless talk about these two companies, they continue to grow into being two of the biggest monsters on wall street.  If you are sitting idly by not investing in either one because you simply can’t decide which one you should go into first, let’s examine them both to see if we can’t help make the call for you.

Both of these companies’ core business is based on advertising revenue.  In reality, they are the two pillars when it comes to online advertisements. However, Facebook has nearly 99% of its revenue come from directly from ads and the rest came from their new hardware offerings of the portal and VR headsets.  In comparison, Google made 84% of its revenue from adverts and 16% from other divisions such as Cloud services and computer and mobile hardware.

The breakdown of both stock basics makes the picture a little more easy to understand and get behind a pick depending on your preferences.  It is clear that Google has been around longer and has consistently been one of the worlds biggest players in the tech and advertising game, but as they have grown into a massive company with many far-reaching projects it is becoming increasingly harder for outsiders to see a path for high yield gains in the upcoming years.

The Winner here is Facebook, Their acquisition of Instagram has proven to be a great purchase, and their play into WhatsApp as well shows they can and will continue to have advertising eyes on their sales platforms for years to come.  As the world shrinks from telecommunication renaissance the world’s most powerful search engine is starting to become less and less relevant.

In the meantime, Google’s new plays in tech are proving to be clashing with cloud services verse the new push into artificial intelligence.  These simple realities are telling of a bigger problem at Google, they simply can’t do anything well but what their core business is, which means no new significant added revenue growth and perhaps even a pullback in their market share as a whole.

For now, Facebook just has far more upside moving forward and should be the stock that new people gravitate towards tech advertising plays.