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.

Google Cloud +48% But CapEx Spikes! All-In AI Would Drag Stock Down Now?

Alphabet’s earnings sparked violent after-hours swings: shares first fell 7.5%, then rebounded over 4%, before turning lower again as investors digested the outlook. Alphabet reported 18% YoY revenue growth, with Search up 17% and Google Cloud revenue beating estimates by 9%. Even after a 42% jump in R&D and a $2.1B one-off Waymo charge, operating margins stayed above 30%. The sticking point: 2026 spending guidance of $180B, more than 50% above expectations, reigniting fears of AI overinvestment.

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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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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