MSFT vs AMZN Stock Comparison: AI Score, Valuation, Performance and Upside
Microsoft and Amazon are both cloud computing titans competing primarily through Azure and AWS respectively. Microsoft's OpenAI partnership and Copilot AI integration are driving enterprise AI workload wins. Amazon's AWS has deeper cloud penetration and a multi-model AI approach through Bedrock. Both companies compound on multiple business lines beyond cloud — Microsoft through Office/LinkedIn, Amazon through e-commerce/advertising.
MSFT vs AMZN is enterprise software cloud leader with OpenAI integration and Copilot AI monetization (Microsoft) versus the largest cloud platform with e-commerce and advertising diversification and multi-model AI flexibility (Amazon) — Microsoft's AI ecosystem integration vs Amazon's cloud scale and e-commerce profitability improvement.
AMZN holds the edge across 3 of 5 key metrics in this comparison. AMZN has delivered stronger 1-year price return (+9.72% vs -2.89%), though MSFT has the better forward P/E setup (21.78x vs 24.68x for AMZN). On fundamentals, AMZN is growing revenue faster (19.60%), while MSFT maintains the higher operating margin (45.11%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for AMZN (+27.80%) than for MSFT (+10.89%).
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.
- prefer Microsoft's enterprise software + Azure + OpenAI combination creating an integrated AI ecosystem across existing Office/Teams/Dynamics customers
- value Copilot's AI monetization potential — every enterprise switching from M365 Basic to Copilot adds $30/user/month of high-margin incremental revenue
- want the most comprehensive enterprise AI stack from one provider — from foundation models (OpenAI/Azure) to apps (Office Copilot) to developer tools (GitHub Copilot)
- are comfortable with Azure's #2 position behind AWS and Copilot commercial adoption potentially being slower than AI enthusiast expectations
- prefer the largest cloud platform with AWS's 200+ services, 30%+ market share, and deepest enterprise cloud infrastructure relationships
- value Amazon's e-commerce profitability improvement as the logistics network matures and same-day delivery economics improve
- want multiple high-growth business segments (AWS, advertising, Prime) compounding simultaneously with each supporting the others through data and customer relationships
- are comfortable with e-commerce thin margins, antitrust scrutiny of marketplace practices, and AWS facing Azure AI competition from Microsoft's OpenAI partnership
| Metric | MSFT | AMZN |
|---|---|---|
| AI scorei | 60.2 | 62.4 |
| AI ranki | #171 | #122 |
| Latest closei | $493.78 | $253.71 |
| 1M returni | +1.96% | -4.56% |
| 6M returni | +26.93% | +21.53% |
| 1Y returni | -2.89% | +9.72% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | MSFT | AMZN |
|---|---|---|
| 1Y ago | $9.71K (-2.9%) started 2025-09-18 | $10.97K (+9.7%) started 2025-09-18 |
| 5Y ago | $17.87K (+78.7%) started 2021-09-20 | $15.12K (+51.2%) started 2021-09-20 |
| 10Y ago | $108.49K (+984.9%) started 2016-09-19 | $65.47K (+554.7%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | MSFT | AMZN |
|---|---|---|
| Market capi | $3.81T | $2.77T |
| Trailing P/Ei | 28.58 | 20.66 |
| Forward P/Ei | 21.78 | 24.68 |
| Price/Salesi | 11.87 | 3.49 |
| EV/Revenuei | 11.65 | 3.74 |
| Analyst targeti | $569.45 | $328.17 |
| Target upsidei | +10.89% | +27.80% |
| Metric | MSFT | AMZN |
|---|---|---|
| Revenue growthi | 17.70% | 19.60% |
| Earnings growthi | 31.70% | 242.30% |
| EPS growthi | +31.70% | +242.30% |
| FCF margini | +4.99% | +0.42% |
| Operating margini | 45.11% | 13.69% |
| Profit margini | 40.30% | 17.44% |
| ROIC proxyi | 34.04% | 30.56% |
| Return on equityi | 34.04% | 30.56% |
| Dividend yieldi | 0.71% | N/A |
| Payout ratioi | 19.83% | 0.00% |
| Dividend growth streaki | No increase yet | N/A |
| Betai | 1.10 | 1.44 |
| Debt/equityi | 29.12 | 45.62 |
| Current ratioi | 1.23 | 1.03 |
| Quick ratioi | 1.10 | 0.84 |
Over the past year, MSFT and AMZN have moved weakly in the same direction (correlation of 0.39), 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 | MSFT | AMZN |
|---|---|---|---|
| 1Y | Growthi | -2.89% | +9.72% |
| CAGRi | -2.89% | +9.73% | |
| Volatilityi | 32.52% | 34.38% | |
| Sharpe ratioi | -0.07 | 0.31 | |
| Sortino ratioi | -0.10 | 0.50 | |
| Max drawdowni | 34.91% | 21.74% | |
| Current drawdowni | 8.91% | 10.67% | |
| Avg drawdowni | 17.02% | 8.77% | |
| Ulcer Indexi | 19.77% | 10.44% | |
| Max daily dropi | 9.99% | 5.55% | |
| Max wkly dropi | 14.43% | 14.09% | |
| 5Y | Growthi | +73.11% | +51.21% |
| CAGRi | +11.61% | +8.63% | |
| Volatilityi | 28.20% | 36.46% | |
| Sharpe ratioi | 0.37 | 0.29 | |
| Sortino ratioi | 0.55 | 0.42 | |
| Max drawdowni | 37.15% | 55.73% | |
| Current drawdowni | 8.91% | 10.67% | |
| Avg drawdowni | 12.18% | 18.17% | |
| Ulcer Indexi | 15.68% | 23.56% | |
| Max daily dropi | 9.99% | 14.05% | |
| Max wkly dropi | 14.43% | 20.35% | |
| 10Y | Growthi | +867.22% | +554.65% |
| CAGRi | +25.48% | +20.68% | |
| Volatilityi | 27.74% | 33.12% | |
| Sharpe ratioi | 0.80 | 0.60 | |
| Sortino ratioi | 1.18 | 0.88 | |
| Max drawdowni | 37.15% | 56.15% | |
| Current drawdowni | 8.91% | 10.67% | |
| Avg drawdowni | 7.63% | 12.88% | |
| Ulcer Indexi | 11.63% | 18.19% | |
| Max daily dropi | 14.74% | 14.05% | |
| Max wkly dropi | 16.36% | 20.35% |
| Category | MSFT | AMZN |
|---|---|---|
| Company | Microsoft Corporation | Amazon.com, Inc. |
| Sector | Technology | Consumer Cyclical |
| Industry | Software - Infrastructure | Internet Retail |
| Core business | Microsoft is the world's most valuable company (by some measures), providing cloud computing (Azure), enterprise software (Office 365, Teams, Dynamics), LinkedIn, Xbox, and developer tools. Azure is the second-largest cloud provider growing 20–25% annually. Microsoft's Copilot AI integration across Office 365, Azure, and Windows is a comprehensive AI monetization strategy — charging premium fees for AI-enhanced versions of existing software subscriptions. Microsoft's OpenAI partnership gives it exclusive Azure deployment of GPT-4/o and Sora models. | Amazon operates the world's largest e-commerce marketplace, the largest cloud computing platform (AWS), and a rapidly growing advertising business. AWS generates the majority of Amazon's operating income. Amazon's advertising business serves high-intent shoppers and is growing 20%+ annually. Prime membership creates loyalty across retail, streaming (Prime Video), and now healthcare (One Medical). Amazon's Bedrock AI platform and Nova AI models position it in the enterprise AI market competing with Microsoft Azure OpenAI. |
| Investor focus | Investors track Azure revenue growth (the primary value creation engine), Copilot commercial adoption, Office 365 commercial seat growth, and operating margin improvement from AI-driven productivity gains in Microsoft's own operations. | Investors track AWS revenue growth, advertising revenue growth, North America e-commerce operating margin improvement, and Amazon Bedrock/Nova AI adoption for enterprise GenAI workloads. |
- Enterprise software and cloud combination creates unmatched cross-sell opportunities — Office 365 customers upgrade to Copilot AI, Azure customers adopt OpenAI API, creating AI revenue layers on existing relationships
- OpenAI partnership with exclusive Azure deployment gives Microsoft the most commercially deployed LLM and a strategic AI advantage over Amazon's more independent AI model approach
- LinkedIn network (1B+ professionals) is a unique B2B data asset enabling Microsoft to develop professional AI tools with proprietary professional data
- AWS is the largest cloud platform with 30%+ market share — deeper enterprise cloud relationships and more cloud services (200+) than Azure
- Advertising business is growing 20%+ with high margins — reaching $50B+ annually from ads shown to high-intent shoppers at the moment of purchase
- Amazon Bedrock multi-model approach (offering Claude, Llama, Stability AI, and others) may appeal to enterprises wanting AI model flexibility vs Microsoft's OpenAI exclusivity
- Azure's market share remains behind AWS — Microsoft must continue growing Azure faster than AWS to close the gap or risk perpetual #2 position
- Copilot enterprise adoption has been slower than hoped — enterprises are hesitant to pay $30/user/month premium without clear ROI evidence at scale
- Microsoft's many businesses (gaming with Activision, LinkedIn, hardware) create complexity — the AI cloud focus must not be distracted by these adjacent investments
- AWS market share has gradually declined as Azure AI adoption has increased — Microsoft's OpenAI partnership has been effective in winning enterprise AI workloads
- E-commerce margins, while improving, remain thin relative to AWS — heavy logistics investment constrains profitability in the majority of Amazon's revenue
- Antitrust scrutiny of Amazon's marketplace practices (self-preferencing its own products) is ongoing and could require behavioral changes
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