Hey, fellow New Yorker! You know those tech giants we keep hearing about? Yeah, Alphabet and Amazon. They’ve taken a bit of a dip recently, and some savvy investors are eyeing them like a fresh bagel on a Sunday morning.
Amazon and Alphabet: A Dynamic Duo
Let’s kick things off by highlighting what makes Amazon and Alphabet tick. Amazon is that friend who finds everything you need—fast. It’s got its thumb on commerce, and almost everyone’s got Prime these days—it’s like the official badge of being a modern-day American. But don’t sleep on the backend: Amazon Web Services (AWS) is the real hero here, making up a huge chunk of the profit pie. Imagine, during a typically quiet third quarter, AWS delivered 66% of Amazon’s operating profits. And come Q4, its growth hit 24% year over year. Crazy, right?
Cloud Powerhouses
On Alphabet’s side of things—yeah, that’s Google’s mama—there’s more than just search engines. Google Cloud is delivering some serious growth with a 48% increase year over year and a sweet 30% operating margin. It’s coming along strong, supporting Alphabet’s advertising-heavy machine. Thanks to the rise of AI, it’s on a trajectory that looks like the L train during rush hour.
Stocks at a Discount
Despite their mighty presence, both stocks are down from their highs. Alphabet saw a dip of about 10%, while Amazon dropped 16%. Not massive, but enough to think about grabbing them while they’re not too pricey. Now, is it time to dive in? Well, both are trading at a premium, but sometimes that’s a flavor worth tasting.
Valuation and Peers
Here’s a little brunch-time stock scoop: The S&P 500 is clocking in at 21.7 times forward earnings. Our buddies Amazon and Alphabet are surfing a bit higher than that. For comparison, take a bite of Microsoft and Nvidia. They’re trading at 24.2 and 22.6 times forward earnings, respectively. In a nutshell, they’re pumping out growth like Times Square lights up at dusk.
Looking at Other Options
Before dropping cash on Alphabet, keep this in your back pocket: The folks at Motley Fool didn’t even place it in their top 10 stocks list. If you’re chasing big returns, maybe peruse their list of explosive picks. Remember when Netflix and Nvidia made the cut? Those who got in early saw returns that’d make your head spin faster than a subway turnstile.
Final Thoughts
Sure, investing in Alphabet and Amazon is like picking up a slice from your favorite pizzeria. Solid, satisfying, but maybe not the freshest thing right now. For the more daring, there’s always Stock Advisor’s sizzling list of 10, waiting to spice up your portfolio.
Happy investing! Make sure you swing by The Motley Fool for more hot takes. Who knows, maybe we’ll all stumble on the next big thing.
Note: All numbers and returns reflect data as of March 14, 2026.
