Motley Fool Picks Amazon Over Microsoft, Alphabet as AWS Growth Hits 28%
Updated
Updated · The Motley Fool · Jul 12
Motley Fool Picks Amazon Over Microsoft, Alphabet as AWS Growth Hits 28%
3 articles · Updated · The Motley Fool · Jul 12
Summary
Amazon was named the top cloud stock pick over Microsoft and Alphabet, with the analysis favoring its valuation and improving growth profile.
AWS revenue rose 28% in the first quarter, and Amazon’s custom-chip business has reached a more than $20 billion run rate, supporting lower AI inference costs and further cloud expansion.
Microsoft’s Azure grew 40% last quarter, but the stock has fallen 20% in 2026 as investors worry about its reliance on OpenAI models and Nvidia GPUs.
Alphabet has led the group with a roughly 13% stock gain and 63% Google Cloud growth, yet the report still gave Amazon the edge because of stronger e-commerce operating leverage and a forward P/E below 25.