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Meta Platforms META and Match Group MTCH are well-known providers of social networking platforms. META, through Facebook, WhatsApp, Instagram, Messenger and Threads, reaches 3.54 billion people globally, while Match is the world’s foremost provider of dating products and operates a portfolio of more than 45 brands, with Tinder being the most well-known. Both companies are infusing AI into their offerings, thereby driving user engagement, which is driving top-line growth. So, META or MTCH, which social networking stock has an edge right now?
META’s focus on integrating AI into its platforms — Facebook, WhatsApp, Instagram, Messenger and Threads — is driving user engagement to boost ad revenues. AI is heavily dependent on data, of which META has a trove, driven by its more than 3.54 billion daily users, including 3 billion monthly actives on Instagram and 150 million daily actives on Threads.
AI recommendations that deliver higher quality and more relevant content are driving engagement. In the third quarter of 2025, time spent on Facebook increased 5% and 30% more on Threads. Reels now has an annual run rate of more than $50 billion as videos continue to grow across Meta Platforms’ apps. Vibes, META’s next-generation AI creation tools and content experience, is gaining traction. META is using Meta AI (currently used by more than one billion people) to boost user experience. Business AI is also gaining traction with more than one billion active threads between people and businesses across the company’s messaging platforms.
Improvement in AI ranking systems is driving advertising revenues. Meta Platforms’ initiatives to unify different models into simpler, more general models, which drive both better performance and efficiency. Annual run rate for META’s completely end-to-end AI-powered ad tools has passed $60 billion at the end of the third quarter of 2025. Meta Platforms has a strong pipeline of ad supply opportunities on both Threads and WhatsApp Status over the long term.
Meta Platforms expects total revenues between $56 billion and $59 billion for the fourth quarter of 2025, including 1% tailwind from favorable forex. The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $58.40 billion, suggesting 20.69% growth from the figure reported in the year-ago quarter.
Match’s prospects are expected to be largely driven by an untapped market. MTCH expects estimates that about 250 million actively dating singles worldwide are not yet using dating apps — including 220 million first-time prospects and 30 million lapsed users — providing significant room for expansion. The company’s strategy to re-engage inactive users and attract new demographics, backed by Hinge’s rapid international rollout (with launches in Mexico in September and Brazil slated for the fourth quarter), supports steady user growth.
Tinder is expected to benefit from innovative features that are expected to help it attract Gen Z. Match focuses on creating more personal experiences for users. The AI-powered Chemistry feature is a key catalyst to drive Tinder’s upcoming 2026 product experience. Chemistry is now live in New Zealand and Australia, with plans to expand to additional countries in the coming months. Launch of Modes is driving attention with Double Date adoption rising 30% in the U.S. since September launch, while College Mode is gaining traction with 1 in 4 eligible students using it and over 8% engaging daily as of October.
Match Group expects fourth-quarter 2025 revenues of $865-$875 million, suggesting 1-2% year-over-year growth. The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $871.58 million, suggesting 1.33% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for META’s fourth-quarter 2025 earnings is pegged at $8.16 per share, up 0.4% over the past 30 days, indicating a 1.75% increase over the figure reported in the year-ago quarter.
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
The consensus mark for Match’s fourth-quarter 2025 earnings has been steady at $1 per share over the past 30 days, suggesting a 21.95% jump over the figure reported in the year-ago quarter.
Match Group Inc. price-consensus-chart | Match Group Inc. Quote
Meta Platforms shares have outperformed Match in the trailing 12 months. While META shares have appreciated 11.3%, Match has climbed 2.1%.
Meta Platforms’ shares are overvalued, as suggested by the Value Score of C. However, Match is cheap as indicated by the Value Score of A.
In terms of forward 12-month price/sales, Meta Platforms shares are trading at 6.93X, higher than Match’s 2.19X.
Both Meta Platforms and Match are expected to benefit from AI usage that is driving user engagement. Although each of the stocks carries a Zacks Rank #3 (Hold), Meta Platforms’ huge user base, AI initiatives and rising earnings estimates give the META stock an edge over Match. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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