The AI investment strategy of Google's parent company is pleasing investors more than that of Meta, which owns Facebook, Instagram, and WhatsApp. The divergence follows first-quarter financial results presented by both companies, where despite both exceeding revenue expectations and projecting high capital expenditure for 2026, Wall Street reacted differently. Alphabet shares rose 6.72% in pre-market trading, while Meta fell 9% despite a 33% growth in sales. Meta increased its 2026 capital expenditure (capex) forecast to between $125 billion and $145 billion, citing higher component costs and data centre expenses. Meanwhile, Alphabet raised its 2026 capex outlook to between $180 billion and $190 billion, with further increases expected in 2027, as it continues to compete in the GPU market and strengthens its partnership with Anthropic.