Analysts Recommend Buying Alphabet and Amazon Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Should l Buy GOOGL?
Source: Fool
- Alphabet's Investment Outlook: Alphabet's strong presence in digital advertising and cloud computing positions it for robust growth, with analysts expecting earnings to increase by 11% annually; despite a current P/E ratio of 28 seeming high, the stock remains a reasonable entry point given its average 15% earnings beat over the last six quarters.
- Cloud Market Share Growth: Google Cloud has accelerated revenue growth over the past three quarters, driven by demand for its Gemini models and custom AI accelerators (TPUs), indicating a steady increase in market share despite trailing AWS and Azure, showcasing its competitive strength.
- Amazon's AI-Driven Growth: Amazon's strong position in online shopping, digital advertising, and cloud computing, combined with its ability to leverage generative AI to reduce costs in its low-margin retail business, provides a significant competitive advantage, with earnings expected to grow by 15% annually.
- Capital Expenditure Plans: Although Amazon's announcement of a $200 billion capital expenditure plan for 2026 has led to a 15% drop in stock price, analysts believe this heavy investment in AI infrastructure will drive long-term growth, making the current stock price an attractive opportunity for long-term 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: 300.880
Low
305.00
Averages
374.25
High
400.00
Current: 300.880
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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