The artificial intelligence boom is happening, alright. It’s a thing. Like taxes, or the eventual heat death of the universe. So it goes.
Amazon and Alphabet – two companies so big they practically are the market, if you believe in such things – are throwing money at this AI business. Trillions, almost. They’re building cloud fortresses, hoping someone will rent space. It’s a gamble, naturally. All money is, really.
Both companies reported decent numbers, which is what they’re supposed to do. The cloud divisions are growing, and they’re promising even more growth. They’re also promising to spend a lot more money. Which is how things escalate, isn’t it? More spending, more promises. A familiar pattern.
If you’re looking for a place to put your money while the robots learn to think, these two are as good a starting point as any. But which one? That’s the question, isn’t it. A truly important question, when you consider everything. Or perhaps not.
Amazon: Solid, Like a Good Pair of Shoes
Amazon sold a lot of stuff in the last quarter. Two hundred and thirteen point four billion dollars worth. It’s a lot of stuff. The cloud business, AWS, grew by 24%. That’s respectable. It’s like watching a plant grow. Slow, steady, inevitable. They’re also advertising, selling subscriptions, and generally being a very large, efficient machine.
They say they’ll be spending two hundred billion dollars on capital expenditures by 2026. That’s a lot of money. But then, everything is relative. Compared to the national debt, it’s a rounding error.
Alphabet: A Faster Horse, Maybe
Alphabet is growing faster than Amazon. Revenue was up 18%. The cloud business, Google Cloud, jumped 48%. That’s a pretty good jump. But most of their money still comes from advertising. People clicking on things. It’s a strange way to build an empire, when you think about it.
They’re higher risk, naturally. Faster growth usually means more risk. But sometimes, you have to take a chance. Or not. It doesn’t really matter in the long run.
The price-to-earnings ratios are similar. Amazon is at 28.6, Alphabet at 28.1. Close enough. I lean toward Alphabet, personally. The faster growth is tempting. But if you’re the cautious type, Amazon is the safer bet. So it goes.
Neither stock is guaranteed to do well, of course. Both companies are spending a lot of money, and there’s no guarantee it will pay off. But if this AI thing really takes off, they’re both likely to benefit. Alphabet might benefit a little more. Or not. The universe is indifferent to our investments.
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2026-02-19 07:12