Amazon vs. Alphabet: Cloud Growth Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Cloud Growth: Amazon's cloud computing segment achieved a 24% year-over-year growth in Q4 2025, generating $35.6 billion in revenue, driven by strong demand for AI workloads, despite overall sales growth being only 14%.
- Alphabet's Strong Performance: In the same quarter, Google's cloud revenue surged 48% to $17.7 billion, with an annual run rate exceeding $70 billion, indicating a more significant market share gain amid the AI boom, further solidifying its leadership in the cloud sector.
- Capital Expenditure Plans: Amazon expects to invest approximately $200 billion in capital expenditures for 2026, while Alphabet plans to spend between $175 billion and $185 billion, aimed at meeting surging customer demand, although such high spending also introduces execution risks.
- Valuation Comparison: Alphabet's price-to-earnings ratio is around 25, compared to Amazon's 28; despite both companies experiencing stock price declines, Alphabet's faster cloud growth and slightly lower valuation make it more attractive to investors.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Capital Expenditure Plans: In 2026, Alphabet plans to invest $175 billion to $185 billion, while Amazon and Meta are set to spend $200 billion and $115 billion to $135 billion on AI-related investments, demonstrating their commitment to technological innovation.
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See More
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