Quick Overview
- Amazon delivered $716.9B in full-year 2025 revenue, AWS cloud segment surged 20% to $128.7B
- Alphabet achieved $402.8B in total 2025 revenue, Google Cloud jumped 48% year-over-year in Q4
- Amazon’s free cash flow fell from $38B to $11B amid aggressive AI infrastructure investments
- Alphabet recorded $129B in operating income and $132.2B in net income for the year
- Wall Street analysts assign both tech stocks a Moderate Buy consensus rating
Two of the world’s most valuable technology companies, Amazon and Alphabet, are pursuing aggressive artificial intelligence strategies. Yet their investment narratives couldn’t be more distinct.
For the complete 2025 fiscal year, Amazon generated revenue of $716.9 billion, representing 12% growth from the previous year. The e-commerce and cloud giant posted operating income of $80 billion alongside net income of $77.7 billion.
The crown jewel remains AWS, Amazon’s cloud computing arm. The division generated $128.7 billion in revenue with 20% annual growth, contributing $45.6 billion in operating income.
Chief Executive Andy Jassy highlighted that Amazon’s AI-related services within AWS have reached an annualized revenue run rate exceeding $15 billion. Additionally, the company’s proprietary chip operations have surpassed a $20 billion annual run rate.
Amazon has outlined plans for approximately $200 billion in capital investments throughout 2026, predominantly targeting AI infrastructure buildout. This massive expenditure resulted in free cash flow declining significantly from $38 billion to just $11 billion.
Alphabet also delivered impressive results for 2025. The Google parent company recorded total revenue of $402.8 billion. The breakdown shows Google Services contributing $342.7 billion while Google Cloud added $58.7 billion.
Alphabet’s operating income climbed to $129 billion for the year, with net income reaching $132.2 billion.
Cloud Services and Video Platform Fuel Expansion
During the final quarter of 2025, Google Cloud revenue skyrocketed 48% to reach $17.7 billion. The cloud segment’s operating income more than doubled, climbing to $13.9 billion from $6.1 billion in the comparable prior-year period.
YouTube generated over $60 billion in combined advertising and subscription revenue throughout the full year. Google Services alone posted $95.9 billion in Q4 revenue, up 14%.
These figures demonstrate that Alphabet’s traditional search and advertising operations continue expanding robustly even as its cloud business accelerates.
Analyst Consensus and Price Targets
Based on MarketBeat data, Amazon receives a Moderate Buy consensus from 59 Wall Street analysts. The rating distribution includes 1 Strong Buy, 54 Buy, and 4 Hold recommendations. Analysts have established an average price target of $287.29.
Alphabet similarly earns a Moderate Buy rating from 51 analysts. This consensus comprises 3 Strong Buy, 44 Buy, and 4 Hold ratings. The mean price target stands at $366.76.
Neither technology stock has received any Sell ratings from analysts monitored by MarketBeat.
Alphabet’s rating composition leans marginally more optimistic, though Amazon attracts wider analyst coverage overall.
The fundamental difference: Amazon is deploying capital more aggressively in the current environment. Alphabet, meanwhile, is delivering superior profit margins relative to its revenue foundation.
Bottom Line
Amazon represents the optimal choice for investors prioritizing AI infrastructure expansion and long-horizon growth potential, accepting near-term margin compression. Alphabet appeals to those seeking robust current profitability, search market dominance, and rapidly scaling cloud operations.
Both stocks maintain Moderate Buy ratings, with zero Sell recommendations among analysts according to the most recent available research.
