Investing.com — Meta Platforms could overtake Google in digital ad revenue by 2026, according to Bernstein analysts, who highlighted the strength of Meta’s recent growth and competitive positioning.
“This quarter was less about Google’s otherwise decent results and more about just how impressive Meta’s ad performance was,” Bernstein said in a note on second-quarter trends.
Meta’s growth, they added, was “particularly interesting” given improvements across both engagement and ad performance.
In the June quarter, Meta captured about $0.45 of every incremental digital ad dollar, gaining 200 basis points from a 35 percent market share a year earlier, Bernstein estimated.
Based on current forecasts, “Meta is on pace to catch Google Search in ad revenues by the end of 2026,” the analysts said.
The firm pointed to robust U.S. growth driven by impressions and engagement. In North America, Meta’s impression growth accelerated to 9 percent year over year, supported by artificial intelligence features that boosted user interaction.
Google, meanwhile, saw paid clicks growth rise to 4 percent year over year, up from 2 percent in the prior quarter, which Bernstein said “delayed AI disruption fears for at least a quarter.”
Regionally, Meta, Pinterest and Reddit all recorded strong results in Europe, while APAC advertisers reduced U.S. spending amid tariff and trade-related changes.
However, Bernstein noted that APAC-based ad spending was higher quarter over quarter when considering global placements.
The analysts said the broader internet sector had regained favour among investors thanks to strong digital ad results, with Meta “leading the charge that ‘social’ platforms could all be AI winners as we find more discretionary minutes.”
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