🎁What the Tigers Say | AMZN vs. GOOG: Which Is the Better Buy Now?

Amazon and Alphabet are two tech giants driving the future of AI and cloud computing. Over the past year, they’ve delivered solid returns of 35% and 44%, respectively.

However, both have faced declines in 2025, with Amazon down 7.11% and Alphabet down 9.36% year-to-date. From a valuation perspective, GOOG looks especially cheap, with a forward P/E of just 19.36.

Which of these tech giants do you prefer?

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Click titles to read the full analysis:

1. @Mickey082024: Is Google Stock The Best Opportunity on the Market!?

Key Points:

From a valuation standpoint, let's analyze Google's historical price-to-earnings (P/E) ratio. Excluding an outlier from 2017, the company's average P/E ratio over the past decade stands at around 26.09.

Breaking down Google's revenue streams, the majority comes from Google Services, which is largely driven by ad revenue. Google Cloud follows, representing a smaller but steadily growing segment. Then there’s the "Other Bets" category, which, while small in comparison, holds significant growth potential.

One of the biggest areas of interest right now is Waymo. Analysts project its valuation could range between $350 billion and $850 billion by 2030. To put that in perspective, Google’s current market cap is just over $2 trillion. If Waymo reaches the midpoint of this estimate, it would be worth around 25% of Google's present value, representing a massive growth opportunity.

Valuation

Now, let’s run some valuation models using my stock valuation. Starting with Graham’s valuation formula, which calculates a stock’s intrinsic value based on projected earnings and growth rates, we input Google's estimated EPS of 8.92 and a growth rate of around 15%. This results in an intrinsic value estimate of approximately $163 per share. However, it's worth noting that corporate bond yields are currently higher than their historical averages, which can impact this valuation.

Next, using a discounted cash flow (DCF) analysis, we value Google based on its future free cash flow projections. While earnings are expected to grow at 15%, we apply a slightly lower free cash flow growth rate of 14%, as Google's free cash flow conversion has declined slightly in recent years. After discounting future cash flows, adding cash and cash equivalents, and subtracting total debt, we arrive at a DCF valuation of around $251.90 per share—roughly 25% higher than its current stock price.

We've also examined Google's historical valuation, but how does it compare to similar companies? While there’s no perfect equivalent, we can look at major tech firms, which currently trade at an average P/E ratio of 33.3. Applying this multiple to Google would result in a valuation of around $273 per share.

Summarizing these three valuation methods, we calculate an average intrinsic value of approximately $262.40 per share. With Google’s current price around $172, this suggests an upside of about 20.4%. Interestingly, this aligns closely with the gap we see between Google’s current and historical P/E ratios.

Applying a margin of safety:

• A 20% margin of safety would place the buy price at $172, right around its current trading level.

• A 30% margin of safety suggests an acceptable buy price of around $154.

In both cases, this signals a buying opportunity.

2. @Bullaroo: GOOGL: Assessing a Potential Bottom Amid Market Headwinds

Key Points:

Alphabet operates in a volatile macro environment, with tech tensions and Trump tariff threats weighing on sentiment. Unlike NVIDIA, Alphabet faces no direct chip export bans, but its global supply chain could feel indirect effects. Compared to peers, its 18x P/E is a bargain against Microsoft’s 35x and Meta’s 23x, while its 15% revenue growth outpaces Apple’s 6% (Q4 2024), per company filings. Cloud growth aligns it with Amazon and Microsoft, though its ad reliance differentiates its risk profile.

Consensus price targets average $188.50 for 2025, implying 11% upside from $168.66, with bullish estimates reaching $205 (22%) by year-end, per MarketBeat. Bank of America’s $190 target cites Cloud and AI potential, while bearish views peg $160 if regulatory or macro risks intensify. A discounted cash flow (DCF) model, assuming 12% revenue growth and 28% margins, supports a fair value of $195–$200, reinforcing undervaluation.

Alphabet’s stock appears to be nearing a bottom as of March 4, 2025, supported by multiple factors:

Fundamentals: A discounted 18x P/E, diversified growth drivers (Cloud up 30%), and $97 billion net cash position, it is a value-growth hybrid.

Financials: Q4 2024’s $93.1 billion revenue and 28.7% margin reflect resilience, with Cloud profitability unlocking new upside.

Strategy: AI acceleration and cost discipline offset regulatory risks, enhancing long-term prospects.

Downside risks—regulatory fines, a death cross, or macro shocks—could push the stock to $160, but these appear secondary to its strengths. For institutional investors, GOOGL offers a 10%–20% upside to $188–$205 by year-end 2025, with $168 as a low-risk entry. Confirmation requires a break above $175 with volume, but the data tilts toward stabilization, making Alphabet a strategic hold in a volatile tape.

3. @Stayclose:

Key Points:

GOOGL Daily RSI extending to oversold area, price dipping below 200SMA, huge support area at $166-$167 level.

Willing to take a risk in this current market condition for a quick cash secured put.

4. @Binni Ong:

Key Points:

Key Observations:

1. Previous All-Time High as Support:

2. The green horizontal line $187 marks a previous all-time high, which could act as a strong support during this correction. Price is currently pulling back after reaching the upper boundary of the equidistant channel.

3. Equidistant Channel Structure:

4. The stock appears to be moving within an equidistant channel, respecting both the upper and lower boundaries.The recent rally touched the top of the channel, leading to a pullback. If price continues following this pattern, the bottom of the channel could act as support.

5. Estimated Support Area:

6. The lower boundary of the equidistant channel currently aligns with the $$170 -$$180 range. This coincides with the previous all-time high at $187, reinforcing a potential support zone.

5. @Aaronkys:

Key Points:

Bought some amzn as price reached the 200 day simple moving average this is a major support. The RSI is at oversold levels. At this price amzn is undervalued, It is a good level to dollar cost average Into the stock.

Questions for you:

Which of these tech giants do you prefer?

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⏰Duration

• 12 March (24pm EDT)