Alphabet Leads Cloud Stocks With 13% Gain as Microsoft Drops 20% in 2026
Updated
Updated · The Motley Fool · Jul 12
Alphabet Leads Cloud Stocks With 13% Gain as Microsoft Drops 20% in 2026
3 articles · Updated · The Motley Fool · Jul 12
Summary
Alphabet has outperformed the other two major cloud stocks in 2026, rising about 13%, while Amazon has gained nearly 7% and Microsoft has fallen 20%.
Cloud growth remains strong across all three, but investors are separating them by AI positioning: Google Cloud revenue jumped 63% last quarter, Azure rose 40%, and AWS accelerated to 28% growth.
Microsoft's slide has come despite Azure strength, as markets worry about its heavier reliance on OpenAI models and Nvidia GPUs and slower progress on in-house AI chips and models.
Amazon and Alphabet are viewed more favorably because both pair expanding cloud demand with proprietary AI infrastructure, giving them cost advantages and additional revenue streams beyond cloud services.