TLDR
- Amazon posted $716.9B in 2025 revenue, with AWS growing 20% to $128.7B
- Alphabet crossed $402.8B in total 2025 revenue, with Google Cloud up 48% in Q4
- Amazon’s free cash flow dropped from $38B to $11B due to heavy AI infrastructure spending
- Alphabet’s operating income hit $129B, with net income reaching $132.2B
- Both stocks carry a Moderate Buy consensus rating from Wall Street analysts
Amazon and Alphabet are two of the biggest companies in the world. Both are investing heavily in artificial intelligence. But they offer investors very different things.
This is not a story about which company is better. It is a story about which business model fits your investment goals.
Amazon reported full-year 2025 revenue of $716.9 billion, up 12% year over year. Operating income came in at $80 billion, and net income hit $77.7 billion.
AWS, Amazon’s cloud division, was the standout. It posted $128.7 billion in revenue, a 20% increase, with operating income of $45.6 billion.
CEO Andy Jassy said in his 2026 annual letter that Amazon’s AI services within AWS are running at more than $15 billion in annualized revenue. The company’s chip business has crossed a $20 billion annualized run rate.
Reuters reported Amazon is planning around $200 billion in capital expenditures in 2026, mostly for AI infrastructure. That spending pushed free cash flow down sharply, from $38 billion to $11 billion.
Alphabet had a strong year too. Total 2025 revenue reached $402.8 billion. Google Services brought in $342.7 billion, and Google Cloud added $58.7 billion.
Operating income for Alphabet rose to $129 billion. Net income came in at $132.2 billion, showing how profitable the business is overall.
Google Cloud Picks Up Speed
In the fourth quarter of 2025, Google Cloud revenue jumped 48% to $17.7 billion. Cloud operating income rose to $13.9 billion from $6.1 billion the year before.
YouTube brought in more than $60 billion across ads and subscriptions for the full year. That adds another layer of revenue beyond search, which remains Alphabet’s core business.
Google Services revenue rose 14% to $95.9 billion in Q4 alone. That shows the core business is still growing at a steady rate.
What Analysts Think
According to MarketBeat, Amazon holds a Moderate Buy consensus from 59 analysts. The breakdown is 1 Strong Buy, 54 Buy, and 4 Hold. The average price target is $287.29.
Alphabet also carries a Moderate Buy from 51 analysts. That includes 3 Strong Buy, 44 Buy, and 4 Hold ratings. The average price target is $366.76.
Both stocks have zero Sell ratings from analysts tracked by MarketBeat.
Alphabet’s analyst mix is slightly more bullish, while Amazon has broader overall coverage across Wall Street.
Amazon is spending more aggressively right now. Alphabet is generating more profit relative to its revenue base.
Final Thoughts
Amazon is the pick for investors focused on AI infrastructure growth and long-term scale, even with heavier spending in the near term. Alphabet suits investors who want strong current profitability, a dominant search business, and a cloud division that is growing fast. Both carry Moderate Buy ratings, and neither has a Sell recommendation from analysts as of the latest data available.
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