Alphabet has a tactical advantage as an "AI first" company. It has a 32% net profit margins and a large cash reserve, allowing it to innovate.
Amazon is the leader in infrastructure but its more than USD 400 billion capex for AWS & logistics is affecting its free cash flow, which dropped 69% recently.
Alphabet can turn Gemini AI into advertising revenue. Amazon must show that its spending won't reduce profits.
The Verdict
Alphabet has superior margins while Amazon is building a large logistics & cloud empire that is expensive to maintain.
Alphabet has a lower risk profile than Amazon. Alphabet's recent growth has outstripped Amazon, making it the likely winner this week.
Winner: Alphabet πππ
@Tiger_Earnings @Tiger_comments @TigerStars @TigerClub @Tiger_SG @CaptainTiger
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.
