Microsoft Struggles While Alphabet and Amazon Show Promising Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 15 2026
0mins
Should l Buy GOOGL?
Source: Fool
- Microsoft's Stock Pressure: In 2026, Microsoft has become the worst-performing stock among the 'Magnificent Seven,' primarily due to slower growth in its Azure cloud platform and high costs associated with AI competition, which have pressured its stock despite a relatively high valuation.
- Alphabet's Significant ROI: Alphabet, Google's parent company, spent $91 billion on capital expenditures last year and pledged $175 billion to $185 billion this year for AI infrastructure, with its Google Gemini AI engine making substantial competitive strides, attracting user preference over ChatGPT.
- Amazon's Surge in Capex: Amazon plans to allocate $200 billion for capital expenditures in 2026, and despite facing higher energy costs, the rapid growth of its Amazon Web Services in recent quarters suggests that this spending may soon yield returns.
- AI-Driven E-commerce Growth: Amazon's e-commerce segments leverage AI for improved product selection and supply chain efficiency, including AI-dependent third-party seller services and digital advertising, which typically report double-digit revenue growth, indicating strong market potential.
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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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- Cloud Computing Growth: Google Cloud's revenue surged 48% year-over-year in Q4, making it the fastest-growing among major cloud competitors, driven by its custom chips that enhance cost performance for AI applications, attracting numerous developers.
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See More
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- Cloud Computing Growth: Google Cloud's revenue surged 48% year-over-year in Q4, making it the fastest-growing among major cloud competitors, indicating its increasing popularity for AI application development, particularly due to its custom chips that offer better cost performance.
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See More
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See More
