The Full-Body Scanners Will See You NowRead Now

Photo by Getty Images.

Alphabet Needs to Replace Sundar Pichai

Photo: Photo by Getty Images.

Shareholders in Alphabet are sending the company a message: It’s time for some drastic action. After a sharp slump in the past few weeks, Alphabet stock is up just 1.9% so far this year compared to the Nasdaq’s 10% rise. In contrast Facebook parent Meta Platforms, which was in the doghouse last year, has jumped 41% year to date. Alphabet and Meta are now trading at nearly the same forward sales multiple, the reversal of the past 12 months when Alphabet was at a premium, according to Koyfin data. 

Sure, the convergence of the two stocks’ valuations is as much about what Meta has done right as what Alphabet hasn’t. Both companies were criticized publicly last year by investors for being overstaffed. While both have since announced layoffs, Meta’s “year of efficiency” program, unveiled with the most recent earnings update on Feb. 1, suggests CEO Mark Zuckerberg plans more cuts. It also may be that tech investors simply decided Meta shares were too cheap relative to Alphabet. While Meta’s business underperformed Alphabet’s last year, investors are now focused on the future. Analysts expect the two companies to average nearly the same topline growth over the next three years, according to S&P Global Market Intelligence.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
Market Research culture
The Full-Body Scanners Will See You Now
Art by Clark Miller.
In late September 2022, Ryan Crownholm, a 46-year-old entrepreneur from Los Angeles, donned a pair of plush surgical scrubs and hopped onto a stainless-steel MRI table at Prenuvo, a fast-growing chain of body-scanning clinics. Crownholm, the founder of landscaping service DirtMatch, was undergoing an elective MRI, which cost him $2,500 and would generate a full 20-page set of diagnostics about...
Latest Briefs
Twitter Releases Ranking Source Code Ahead of Verified-Check Removals
Meta Tells Managers to Temporarily Stop Hiring Remote Workers
Fidelity Marks Down Twitter Stake Another 7.9%
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
From left, Alphabet CEO Sundar Pichai, DeepMind CEO Demis Hassabis and Google Brain chief Jeff Dean. Photos by Getty, Bloomberg
Exclusive google ai
Alphabet’s Google and DeepMind Pause Grudges, Join Forces to Chase OpenAI
OpenAI’s success in overtaking Google with an artificial intelligence–powered chatbot has achieved what seemed impossible in the past: It has forced the two AI research teams within Google’s parent, Alphabet, to overcome years of intense rivalry to work together.
Art by Clark Miller.
Opinion startups
Don’t Build the Wrong Kind of AI Business
At a catch-up coffee a few weeks ago, a founder friend asked me, “What AI thing should we build?” It was the third time that week a founder had asked me the same question.
Orlando Bravo, co-founder of Thoma Bravo LLC. Photo by Bloomberg.
DEALS enterprise
Private Equity Firms’ Secret Weapon for Big Software Buyouts
When Thoma Bravo was drawing up the financing of its $8 billion acquisition of Coupa Software last year, the private equity giant didn’t turn to a bank, and it didn’t get a traditional loan.
Art by Clark Miller.
Market Research e-commerce culture
The Skin-Tech Devices Helping Execs Beautify in a Hurry
I’m always 29 at heart,” said Liyia Wu, CEO of ShopShops, a livestream shopping app for fashion, beauty and lifestyle products.
Art by Clark Miller.
Opinion entertainment media/telecom
The Streaming Business Model Is Hitting Its Half-Life
Sign up for Rosen’s newsletter, Parqor, part of The Information’s newsletter network.
Org Charts microsoft ai
The People Who Make OpenAI Run Fast
Sam Altman has been the face of OpenAI as it quickly outmaneuvered rivals such as Google to launch cutting-edge artificial intelligence to the public.