Amazon vs Alphabet: Two Tech Giants, Two Very Different Investment Stories

TLDR

• Amazon posted $716.9B in 2025 revenue, with AWS growing 20% to $128.7B
• Alphabet crossed $402.8B in total 2025 revenue, with Google Cloud up 48% in Q4
• Amazon’s free cash flow dropped from $38B to $11B due to heavy AI infrastructure spending
• Alphabet’s operating income hit $129B, with net income reaching $132.2B
• Both stocks carry a Moderate Buy consensus rating from Wall Street analysts

Amazon and Alphabet are two of the largest companies in the world. Both are betting big on artificial intelligence. But they offer investors very different financial profiles.

Amazon reported full-year 2025 revenue of $716.9 billion, up 12% year over year. Operating income came in at $80 billion, and net income hit $77.7 billion.

Amazon.com, Inc., AMZN

AWS, Amazon’s cloud division, was the standout performer. It posted $128.7 billion in revenue, a 20% increase, with operating income of $45.6 billion.

CEO Andy Jassy said Amazon’s AI services within AWS are running at more than $15 billion in annualized revenue. The company’s chip business has crossed a $20 billion annualized run rate.

Amazon is planning around $200 billion in capital expenditures in 2026, mostly for AI infrastructure. That spending pushed free cash flow down sharply, from $38 billion to $11 billion.

Alphabet had a strong year as well. Total 2025 revenue reached $402.8 billion. Google Services brought in $342.7 billion, and Google Cloud added $58.7 billion.

Operating income for Alphabet rose to $129 billion. Net income came in at $132.2 billion.

Google Cloud and YouTube Drive Growth

In the fourth quarter of 2025, Google Cloud revenue jumped 48% to $17.7 billion. Cloud operating income rose to $13.9 billion, up from $6.1 billion the year before.

Alphabet Inc., GOOGL

YouTube brought in more than $60 billion across ads and subscriptions for the full year. Google Services revenue rose 14% to $95.9 billion in Q4 alone.

That shows the core search and advertising business is still growing at a steady pace alongside its cloud expansion.

What Wall Street Is Saying

According to MarketBeat, Amazon holds a Moderate Buy consensus from 59 analysts. The breakdown is 1 Strong Buy, 54 Buy, and 4 Hold. The average price target is $287.29.

Alphabet also carries a Moderate Buy from 51 analysts. That includes 3 Strong Buy, 44 Buy, and 4 Hold ratings. The average price target is $366.76.

Both stocks have zero Sell ratings from analysts tracked by MarketBeat.

Alphabet’s analyst mix is slightly more bullish, while Amazon has broader overall coverage across Wall Street.

Amazon is spending more aggressively right now. Alphabet is generating more profit relative to its revenue base.

Final Thoughts

Amazon is the pick for investors focused on AI infrastructure growth and long-term scale, even with heavier near-term spending. Alphabet suits investors who want strong current profitability, a dominant search business, and a fast-growing cloud division.

Both carry Moderate Buy ratings, and neither has a Sell recommendation from analysts as of the latest available data.

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