Amazon Valuation Outpaces Alphabet in Forward Earnings Multiple

Rosenblatt Securities analyst Scott Devitt recently initiated coverage of Amazon with a Buy rating and set a price target of $335, representing a 27.9% gain from Thursday's closing level of $261.86.

The recommendation is part of Devitt's AI-growth thesis for Amazon, which he considers a top pick due to its strength in AI and solid business-model performance.

However, Alphabet Inc.'s valuation narrative stands apart, with the consensus price target of $428.07 pointing to a 25.5% potential rise, just exceeding Amazon's 24.8% consensus difference.

The current trading price for Alphabet is around 10% less than Amazon's forward earnings multiple, which raises questions about its valuation compared to Amazon.