AMZN vs GOOGL: Amazon vs Google — AI, Cloud & Advertising Compared: AI Score, Valuation, Performance and Upside
Amazon and Alphabet are both AI-native hyperscalers with dominant cloud and advertising businesses, but their emphasis differs: Amazon's core asset is AWS and a logistics/retail ecosystem, while Alphabet's core asset is the Google Search advertising franchise. Both are investing heavily in AI with Anthropic (Amazon) and Gemini/DeepMind (Alphabet) as respective differentiated approaches.
Use this AMZN vs GOOGL comparison to choose between the largest cloud provider and the dominant search advertising franchise. Amazon is more diversified across e-commerce, cloud, and ads; Alphabet offers higher advertising margin quality and potentially undervalued assets in Cloud, YouTube, and Waymo.
GOOGL holds the edge across 5 of 5 key metrics in this comparison. GOOGL leads on both 1-year return (+45.70%) and forward P/E quality (23.37x vs 25.64x for AMZN), a relatively favorable combination of momentum and valuation. GOOGL leads on both revenue growth (24.20%) and operating margin (34.03%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies similar upside for both: +22.99% for AMZN and +23.51% for GOOGL.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want the largest cloud provider with the broadest enterprise infrastructure footprint
- Value Amazon's diversification across e-commerce, cloud, advertising, and AI
- Believe AWS's Anthropic partnership provides a differentiated AI model stack
- See advertising as an underappreciated high-margin growth driver for Amazon
- Want exposure to the highest-margin advertising franchise in technology
- Believe Google Search will maintain its dominance despite AI-native search challenges
- See Google Cloud and YouTube as undervalued relative to the advertising business
- Value Waymo autonomous vehicle optionality as a potential long-term platform business
| Metric | AMZN | GOOGL |
|---|---|---|
| AI scorei | 61.3 | 64.4 |
| AI ranki | #127 | #83 |
| Latest closei | $258.51 | $338.46 |
| 1M returni | -5.19% | -6.61% |
| 6M returni | +21.25% | +13.38% |
| 1Y returni | +9.69% | +45.70% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AMZN | GOOGL |
|---|---|---|
| 1Y ago | $11.13K (+11.3%) started 2025-09-05 | $14.4K (+44.0%) started 2025-09-05 |
| 5Y ago | $14.73K (+47.3%) started 2021-09-07 | $23.68K (+136.8%) started 2021-09-07 |
| 10Y ago | $65.54K (+555.4%) started 2016-09-06 | $84.58K (+745.8%) started 2016-09-06 |
Hypothetical — past performance does not guarantee future results.
| Metric | AMZN | GOOGL |
|---|---|---|
| Market capi | $2.87T | $4.24T |
| Trailing P/Ei | 21.42 | 17.39 |
| Forward P/Ei | 25.64 | 23.37 |
| Price/Salesi | 3.49 | 5.88 |
| EV/Revenuei | 3.87 | 9.27 |
| Analyst targeti | $327.67 | $428.07 |
| Target upsidei | +22.99% | +23.51% |
| Metric | AMZN | GOOGL |
|---|---|---|
| Revenue growthi | 19.60% | 24.20% |
| Earnings growthi | 242.30% | 294.00% |
| EPS growthi | +242.30% | +294.00% |
| FCF margini | +0.42% | +5.08% |
| Operating margini | 13.69% | 34.03% |
| Profit margini | 17.44% | 54.77% |
| ROIC proxyi | 30.56% | 48.68% |
| Return on equityi | 30.56% | 48.68% |
| Dividend yieldi | N/A | 0.25% |
| Betai | 1.45 | 1.24 |
| Debt/equityi | 45.62 | 18.86 |
| Current ratioi | 1.03 | 2.72 |
| Quick ratioi | 0.84 | 2.47 |
Over the past year, AMZN and GOOGL have moved moderately in the same direction (correlation of 0.53), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AMZN | GOOGL |
|---|---|---|---|
| 1Y | Growthi | +11.27% | +44.03% |
| CAGRi | +11.30% | +44.18% | |
| Volatilityi | 34.44% | 31.48% | |
| Sharpe ratioi | 0.35 | 1.18 | |
| Sortino ratioi | 0.57 | 1.91 | |
| Max drawdowni | 21.74% | 21.09% | |
| Current drawdowni | 8.98% | 15.94% | |
| Avg drawdowni | 8.78% | 6.41% | |
| Ulcer Indexi | 10.42% | 8.58% | |
| Max daily dropi | 5.55% | 7.13% | |
| Max wkly dropi | 14.09% | 10.37% | |
| 5Y | Growthi | +47.33% | +135.71% |
| CAGRi | +8.07% | +18.73% | |
| Volatilityi | 36.46% | 32.13% | |
| Sharpe ratioi | 0.27 | 0.56 | |
| Sortino ratioi | 0.40 | 0.82 | |
| Max drawdowni | 55.73% | 44.32% | |
| Current drawdowni | 8.98% | 15.94% | |
| Avg drawdowni | 18.17% | 13.47% | |
| Ulcer Indexi | 23.56% | 17.52% | |
| Max daily dropi | 14.05% | 9.51% | |
| Max wkly dropi | 20.35% | 13.41% | |
| 10Y | Growthi | +555.39% | +741.76% |
| CAGRi | +20.69% | +23.75% | |
| Volatilityi | 33.12% | 29.55% | |
| Sharpe ratioi | 0.60 | 0.72 | |
| Sortino ratioi | 0.88 | 1.05 | |
| Max drawdowni | 56.15% | 44.32% | |
| Current drawdowni | 8.98% | 15.94% | |
| Avg drawdowni | 12.85% | 9.67% | |
| Ulcer Indexi | 18.18% | 13.71% | |
| Max daily dropi | 14.05% | 11.63% | |
| Max wkly dropi | 20.35% | 15.46% |
| Category | AMZN | GOOGL |
|---|---|---|
| Company | Amazon.com, Inc. | Alphabet Inc. |
| Sector | Consumer Cyclical | Communication Services |
| Industry | Internet Retail | Internet Content & Information |
| Core business | E-commerce marketplace and fulfilment, AWS cloud infrastructure, digital advertising, Prime subscription, and AI services (Alexa, Bedrock). Investing heavily in AI via Anthropic partnership and AWS AI infrastructure. | Search and advertising (Google Search, YouTube), cloud infrastructure (Google Cloud), consumer hardware, autonomous vehicles (Waymo), and AI research (DeepMind, Gemini). |
| Investor focus | AWS revenue growth and AI workload expansion, advertising revenue growth, retail operating leverage, Prime membership, and Anthropic partnership impact. | Search revenue resilience as AI shifts query behaviour, Google Cloud AI growth, Gemini model competitiveness, YouTube monetisation, and Waymo commercialisation. |
- AWS is the largest public cloud by revenue with strong enterprise relationships and AI infrastructure investment
- Advertising business is among the fastest-growing large-scale ad platforms globally
- Retail Prime ecosystem creates durable consumer loyalty and high-margin advertising inventory
- Google Search is the most profitable advertising channel in history with near-monopoly share
- Google Cloud growing rapidly with competitive AI infrastructure and strong TPU capabilities
- YouTube is the largest video platform globally with significant monetisation runway
- AWS growth rate versus Azure and Google Cloud in AI workloads
- Retail operating margins remain thin and capital-intensive
- Antitrust scrutiny on marketplace practices and AWS competitive behaviour
- AI-native search engines threatening Google's core query monetisation model
- Antitrust exposure in Search, advertising tech, and app store distribution
- Google Cloud revenue scale still significantly below AWS and Azure
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