Fb Vs Alphabet Operating Margin

To some degree, the divergence is simply because Alphabet is five years older than Facebook, and books almost 3x as much revenue — $26.01 billion, vs $9.32 billion for Facebook in Q2.
Alphabet shares, on the other hand, fell the day after its report.
Facebook’s second quarter operating margin, or the percentage of revenue left after deducting expenses, was 47.2 percent.
)Wehner tightened down expenses even as Facebook generated revenue growth of 45 percent, more than twice Alphabet’s rate of 21 percent.
Facebook is starting from a lower base, so doesn’t have to spend as much to generate growth as Alphabet does.

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