From The Motley Fool · David Jagielski, CPA · · 1m
Amazon vs Alphabet: Which Magnificent Seven Stock Wins?
Alphabet's AI edge and higher margins make it the better Magnificent Seven stock buy.
In brief
Alphabet's AI edge and higher margins make it the better Magnificent Seven stock buy. Alphabet's stronger profit margins and AI positioning make it the better Magnificent Seven stock buy. Originally reported by The Motley Fool.
Quick answers
- Which business is growing faster?
- Amazon and Alphabet both have AI growth opportunities but Alphabet has slightly better recent growth rates.
- What is the key takeaway from Amazon vs Alphabet: Which Magnificent Seven Stock Wins??
- Alphabet's stronger profit margins and AI positioning make it the better Magnificent Seven stock buy.
Which business is growing faster?
Amazon and Alphabet both have AI growth opportunities but Alphabet has slightly better recent growth rates.
Amazon's larger revenue base
Amazon generated $776 billion in revenue over four quarters versus Alphabet's $446 billion.
Alphabet's higher profit margins
Alphabet achieved 33% operating margins versus Amazon's 12% over the past year.
Valuation comparison
Amazon trades at a forward P/E of 24 versus Alphabet's 22, both above S&P 500 averages.
Why Alphabet is the better buy
Alphabet's business is more diversified and has higher profit margins for AI investments.
The verdict
Alphabet is the better Magnificent Seven stock buy with clear upside potential.
The takeaway
Alphabet's stronger profit margins and AI positioning make it the better Magnificent Seven stock buy.
