I don’t have an agenda; I hold both stocks and I’m curious about the bull case for Amazon over Google.
From my perspective, Google looks like the stronger play right now. They have a lower valuation and a solid hedge against a potential compute oversupply, as they have Gemini and Search to fall back on which would benefit greatly if compute costs fall. They’re arguably the most fully integrated cloud provider, which should lead to better long-term margins, and a large portion of their cloud contracts are AI-focused rather than just storage which also has higher margins.
Amazon is obviously in a great position, but they seem more reliant on retail and AWS for profits. I view this as a potential existential threat—specifically, I worry that Google’s ability to use its non-cloud profits to undercut prices and pull customers into their ecosystem could squeeze Amazon’s market share. While I acknowledge Amazon’s potential with automation, Google currently feels like the clear leader in the AI race.
Can I hear some contradictory opinions? Why are you choosing Amazon here?