Alphabet Soars as Google Cloud Leaves AWS in Dust
Amazon and Alphabet both reported impressive second-quarter numbers, but one company stands out as a top choice for investors. According to recent earnings reports, Google Cloud surged 82% year-over-year, compared to Amazon Web Services' 37% growth. This rapid acceleration in cloud computing is a key factor driving Alphabet's stock price higher.
Alphabet's operating margin of 34% nearly triples Amazon's 13.7%, and the company's stock has gained 37% over the past year versus Amazon's 6%. Additionally, Alphabet raised $70 billion and doubled its long-term debt to $98 billion, betting on AI dominance.
Amazon, on the other hand, is spreading its bets across various areas, including Trainium silicon, Bedrock as a model marketplace, Zoox robotaxis, and Amazon Leo satellites. However, this diversification comes at a cost, with lower embedded expectations that some turnaround-oriented investors may find appealing.