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Key Takeaways
- Amazon (AMZN) delivered $716.9B in total revenue for 2025, with AWS cloud services expanding 20% to reach $128.7B
- Alphabet (GOOGL) achieved $402.8B in 2025 revenue, featuring 48% Q4 growth in Google Cloud
- Amazon’s free cash flow contracted from $38B to $11B as the company pours capital into AI infrastructure
- Alphabet generated $129B in operating income alongside $132.2B in net income
- Wall Street analysts assign both technology stocks a Moderate Buy consensus rating
Amazon (AMZN) and Alphabet (GOOGL) stand as two of the planet’s most valuable corporations. While both are making substantial investments in artificial intelligence capabilities, they present distinctly different value propositions for shareholders.
Amazon (AMZN) disclosed full-year 2025 revenues totaling $716.9 billion, representing a 12% year-over-year expansion. The e-commerce and cloud computing giant recorded $80 billion in operating income and $77.7 billion in net income.
AWS emerged as the company’s crown jewel during this period. Amazon’s cloud computing arm generated $128.7 billion in revenue—a 20% climb—while contributing $45.6 billion in operating income.
CEO Andy Jassy highlighted that Amazon’s AI-powered services within AWS have surpassed a $15 billion annualized revenue run rate. Additionally, the company’s custom chip division has exceeded $20 billion on an annualized basis.
Amazon has earmarked approximately $200 billion for capital expenditures in 2026, with the lion’s share directed toward AI infrastructure buildout. This aggressive investment strategy resulted in a significant free cash flow decline from $38 billion down to $11 billion.
Alphabet (GOOGL) also posted impressive results for the year. The Google parent company recorded total 2025 revenues of $402.8 billion. Google Services accounted for $342.7 billion of that figure, while Google Cloud contributed $58.7 billion.
Alphabet’s operating income climbed to $129 billion, with net income registering at $132.2 billion.
YouTube and Google Cloud Fuel Alphabet’s Momentum
During the final quarter of 2025, Google Cloud revenue surged 48% to hit $17.7 billion. The cloud division’s operating income more than doubled, rising from $6.1 billion in the prior year to $13.9 billion.
YouTube generated over $60 billion in combined advertising and subscription revenue throughout the full year. Google Services revenue increased 14% to reach $95.9 billion in Q4 by itself.
This performance demonstrates that Alphabet’s fundamental search and digital advertising operations continue expanding at a healthy clip even as its cloud business accelerates.
Analyst Perspectives on Both Stocks
Based on MarketBeat data, Amazon (AMZN) receives a Moderate Buy consensus rating from 59 Wall Street analysts. The distribution consists of 1 Strong Buy, 54 Buy, and 4 Hold recommendations. Analysts set an average price target of $287.29.
Alphabet (GOOGL) similarly earns a Moderate Buy consensus from 51 analysts. The breakdown includes 3 Strong Buy, 44 Buy, and 4 Hold ratings. The consensus price target stands at $366.76.
Neither stock currently has any Sell ratings among analysts monitored by MarketBeat.
Alphabet’s analyst composition leans slightly more optimistic, though Amazon attracts wider analyst coverage overall on Wall Street.
Amazon is deploying capital more aggressively at this juncture. Alphabet is producing superior profit margins relative to its revenue generation.
Bottom Line
Amazon (AMZN) represents the optimal choice for investors prioritizing AI infrastructure expansion and massive long-term scale potential, despite elevated near-term capital spending. Alphabet (GOOGL) appeals to investors seeking robust current profitability, search engine dominance, and rapidly expanding cloud operations.
Both companies maintain Moderate Buy ratings from analysts, with zero Sell recommendations recorded for either stock based on the most recent data available.
