Tech giants Meta Platforms (META) and Alphabet (GOOGL) are all set to report their Q3 earnings this week on Wednesday, October 29. Both have performed well this year, helped by a recovery in digital ads and progress in AI. Still, each company has challenges that could impact investor reactions. With expectations high, the focus now is on which stock offers better upside as Q3 earnings approach.
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Ahead of the Q3 report, both stocks carry Strong Buy ratings. However, META offers a higher potential upside compared to GOOGL.
What Analysts Expect from Meta’s Q3 Earnings
On Wall Street, analysts expect Meta’s Q3 earnings per share to jump 11.4% year over year to $6.72, up from $6.03 last year. Meanwhile, revenue is projected at $49.4 billion, marking over 21% growth and near the upper end of the company’s guidance.
However, higher spending on research, talent, and general operations to strengthen its AI technology and capabilities is expected to keep margins under pressure. Overall, investors will be watching to see whether these investments ultimately translate into stronger revenue growth and improved profitability.
META Earns Fresh Bullish Calls Before Q3 Results
Multiple top-rated analysts on Wall Street have reaffirmed their Buy ratings on META stock ahead of Q3 results. Most recently, Youssef Squali at Truist Financial raised his price target from $880 to $900, predicting over 20% upside from the current level.
Squali expects Meta’s numbers to be in line with or slightly above his estimated 22% revenue growth, driven by strong user engagement and better monetization from improved ranking and recommendation systems. For Q4, he expects revenue guidance of $55–58 billion, which would be about 18% growth.
Likewise, Bank of America’s five-star-rated analyst Justin Post expects Meta to report Q3 revenue of $50 billion and EPS of $7.30, both above Wall Street estimates. He believes another strong quarter of ad growth and a solid outlook would boost investor confidence in the strength of Meta’s AI-powered ad business.
What Analysts Expect from Google’s Q3 Earnings
Turning to Google, Wall Street expects the company to report Q3 earnings of $2.27 per share, up from $2.12 a year ago. At the same time, revenue is projected to reach $99.95 billion, reflecting year-over-year growth of roughly 13%. This aligns with Alphabet’s steady growth in recent quarters, showing that its AI momentum remains intact.
However, the expected 7% EPS growth indicates that rising costs are outpacing revenue gains. This suggests ongoing investments are pressuring short-term profitability while laying the foundation for long-term growth.
Top Analysts Raise Price Targets on GOOGL
Last week, top-rated analysts at Mizuho and Stifel raised their price targets to $292 on GOOGL stock, predicting over 12% upside. Both also reaffirmed their Buy ratings. Notably, Stifel’s Mark Kelley pointed to stronger Q3 ad growth, especially in September. However, he still flags tougher year-ago comps and macro risks that could temper Q4 guidance.
Meanwhile, five-star-rated analyst Mark Shmulik at Bernstein lifted his price target from $210 to $260 on GOOGL stock while maintaining his Hold rating. Shmulik sees reduced regulatory pressure and accelerating AI progress, supporting the higher valuation. He also noted strong momentum in Google Cloud, driven by greater usage from Anthropic and other large AI customers, and expects the platform’s growth to keep picking up this quarter.
META or GOOGL: Which Tech Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared META and GOOGL to see which tech stock analysts favor. Both stocks carry a Strong Buy consensus from analysts. Notably, Alphabet has a stock price target of $265.91, which is similar to its current trading level. On the other hand, Meta’s stock price target is $878.09, which implies an upside of over 16% from the current level.
