Alphabet vs Amazon: whose earn-To The Moon - Tiger Brokers Online Investing Community - To The Moon

Alphabet vs Amazon: whose earnings best prove AI monetisation?

Alphabet
Alphabet’s proof point is Search + Cloud. If Gemini features lift ad yield and engagement without compressing margins, and Google Cloud shows faster growth with improving operating margins, that is direct evidence AI is monetising at scale. Risk: high AI capex diluting margins if revenue lift lags.

Amazon
Amazon’s test is AWS. Clear signs that AI workloads are driving reacceleration in AWS growth and margin expansion would validate monetisation more cleanly. Enterprise contracts, higher attach rates, and operating leverage make AI revenue easier to attribute.

Verdict
• Cleaner AI monetisation signal: Amazon (AWS is a paid, usage-driven platform).
• Bigger strategic payoff if it lands: Alphabet (AI defending Search margins and scaling Cloud).

In short, Amazon offers clearer near-term proof; Alphabet offers higher upside if execution matches expectations.

Mag 7 Recap: AI Falls Short👀 Buy Apple, Sell Over-CapEx Names?

Google and Amazon delivered earnings showing strong growth but also sharply higher CapEx. Google managed to recover after an initial 7% drop, closing only about -0.6% lower, while Amazon plunged roughly 10%. Last week, Microsoft also reported a major surge in CapEx, and its stock has fallen about 15% over the past two weeks. In contrast, Apple has rallied about 10% over the same period. Meta, after a strong surge last week, has almost given back those gains this week. Tesla, meanwhile, dropped sharply yesterday and slipped back below $400.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Google managed to recover after an initial 7% drop, closing only about -0.6% lower, while Amazon plunged roughly 10%.\nLast week, Microsoft also reported a major surge in CapEx, and its stock has fallen about 15% over the past two weeks. In contrast, Apple has rallied about 10% over the same period. \nMeta, after a strong surge last week, has almost given back those gains this week. Tesla, meanwhile, dropped sharply yesterday and slipped back below $400.","image":"https://community-static.tradeup.com/news/59d7de3787d19f8662f01e4d76283cd7"}],"images":[],"coverImages":[],"html":"<html><head></head><body>Alphabet vs Amazon: whose earnings best prove AI monetisation?\n<p></p>\n<p>Alphabet<br>\n  Alphabet’s proof point is Search + Cloud. If Gemini features lift ad yield and engagement without compressing margins, and Google Cloud shows faster growth with improving operating margins, that is direct evidence AI is monetising at scale. Risk: high AI capex diluting margins if revenue lift lags.</p>\n<p>Amazon<br>\n  Amazon’s test is AWS. Clear signs that AI workloads are driving reacceleration in AWS growth and margin expansion would validate monetisation more cleanly. Enterprise contracts, higher attach rates, and operating leverage make AI revenue easier to attribute.</p>\n<p>Verdict<br>\n  • Cleaner AI monetisation signal: Amazon (AWS is a paid, usage-driven platform).<br>\n  • Bigger strategic payoff if it lands: Alphabet (AI defending Search margins and scaling Cloud).</p>\n<p>In short, Amazon offers clearer near-term proof; Alphabet offers higher upside if execution matches expectations.</p></body></html>","htmlText":"<html><head></head><body>Alphabet vs Amazon: whose earnings best prove AI monetisation?\n<p></p>\n<p>Alphabet<br>\n  Alphabet’s proof point is Search + Cloud. If Gemini features lift ad yield and engagement without compressing margins, and Google Cloud shows faster growth with improving operating margins, that is direct evidence AI is monetising at scale. Risk: high AI capex diluting margins if revenue lift lags.</p>\n<p>Amazon<br>\n  Amazon’s test is AWS. Clear signs that AI workloads are driving reacceleration in AWS growth and margin expansion would validate monetisation more cleanly. Enterprise contracts, higher attach rates, and operating leverage make AI revenue easier to attribute.</p>\n<p>Verdict<br>\n  • Cleaner AI monetisation signal: Amazon (AWS is a paid, usage-driven platform).<br>\n  • Bigger strategic payoff if it lands: Alphabet (AI defending Search margins and scaling Cloud).</p>\n<p>In short, Amazon offers clearer near-term proof; Alphabet offers higher upside if execution matches expectations.</p></body></html>","text":"Alphabet vs Amazon: whose earnings best prove AI monetisation? Alphabet Alphabet’s proof point is Search + Cloud. If Gemini features lift ad yield and engagement without compressing margins, and Google Cloud shows faster growth with improving operating margins, that is direct evidence AI is monetising at scale. Risk: high AI capex diluting margins if revenue lift lags. Amazon Amazon’s test is AWS. Clear signs that AI workloads are driving reacceleration in AWS growth and margin expansion would validate monetisation more cleanly. Enterprise contracts, higher attach rates, and operating leverage make AI revenue easier to attribute. Verdict • Cleaner AI monetisation signal: Amazon (AWS is a paid, usage-driven platform). • Bigger strategic payoff if it lands: Alphabet (AI defending Search margins and scaling Cloud). 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