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Alphabet's cloud growth and margins outpace Amazon, making it the preferred AI investment choice today.

Company Fundamentals
11 Sep 2026
24/7 Wall Street
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Bullish
Alphabet's cloud growth and margins outpace Amazon, making it the preferred AI investment choice today.

Amazon and Alphabet both reported strong Q2 2026 results with AWS posting its fastest growth in 18 quarters and Google Cloud surging 82% year-over-year. Amazon's revenue reached $200.61B with AWS operating margins at 39.4%, while Alphabet posted $119.8B revenue with Google Cloud margins expanding to 35.6%. Alphabet trades at a lower P/E of 17 versus Amazon's 21, with higher operating margins and stronger stock performance over the past year. Despite Amazon's diversification and growth in retail and AI infrastructure, Alphabet's accelerating cloud growth, margin expansion, and cash generation make it the favored stock for investors focused on AI and cloud leadership going forward.

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