Alphabet and Meta are set to report quarterly results this week, with investors focused on two big questions: how much the companies are spending on artificial intelligence and whether legal pressure could curb future growth.

For Alphabet, the market will be looking for signs that heavy AI investment is starting to pay off without squeezing margins too sharply. Meta faces similar scrutiny as it pours money into AI tools and infrastructure while trying to prove the spending will support ad growth and product engagement.

Regulatory risk will also loom over both companies. Alphabet continues to face antitrust litigation in the U.S. and abroad, while Meta remains under pressure over its market power and business practices. Any new developments in these cases could shape investor expectations for the second half of the year.

The results will offer a fresh read on whether the biggest digital platforms can keep expanding while managing rising costs, tougher competition, and a more aggressive legal environment.