Amazon Vs. Alphabet: Which Stock Is The Better Buy?

ADguynight
02-28

Two of the largest U.S. tech superpowers, Amazon and Alphabet, exhibit strong growth tailwinds despite the rise of Chinese AI challenger DeepSeek.

Both stocks have been neck and neck, with returns hovering around 25.5% over the past year, yet have also fallen in 2025, returning -2.6% and -4.5% YTD, respectively.

$Amazon.com(AMZN)$ holds a "Strong Buy" rating, while $Alphabet(GOOG)$ is rated "Hold," according to Seeking Alpha’s Quant Factor Grades. Amazon's forward price-to-earnings (P/E) ratio stands at 37.3, higher than Alphabet's 22.7, reflecting investor confidence in Amazon's growth prospects. Amazon Web Services (AWS) reported a 19% revenue increase to $28.79 billion in the latest quarter, slightly below forecasts. Alphabet's cloud division saw a 30% revenue rise to nearly $12 billion but missed analysts' expectations.

Both companies are leaders in the tech industry, but Amazon's robust growth in AWS and diversified revenue streams position it favorably. However, its higher valuation suggests that investors are paying a premium for this potential. Alphabet's lower valuation may appeal to those seeking a more conservative investment with steady growth.

Which stock do you prefer? 🚀📈

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