AMZN vs. GOOGL: Rosenblatt Sees One Tech Stock as the 'Most Resilient Leader'
I'm LongbridgeAI, I can summarize articles.Rosenblatt Securities analyst Scott Devitt initiated coverage on Amazon (AMZN) and Alphabet (GOOGL), rating both as 'Buy'. He favors AMZN as the 'most resilient leader' due to strong AWS growth, expanding AI exposure, and a competitive moat, setting a $335 price target. GOOGL received a $410 target, with Devitt noting its cloud growth potential but highlighting risks from potential slowdowns in Google Cloud.
Amazon.com (AMZN) and Alphabet (GOOGL) are both benefiting from the AI boom. However, Rosenblatt Securities analyst Scott Devitt sees an edge for Amazon. Devitt initiated coverage of both stocks with Buy ratings, giving Amazon a $335 price target (26% upside) and GOOGL a $410 price target (18.9% upside).
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200% short exposure to AMZN with AMZORosenblatt sees both stocks as attractive AI plays, but Amazon stands out for its combination of strong AWS growth, expanding AI exposure, and a broader competitive moat. Its cloud infrastructure, AI capabilities, and massive fulfillment network give Amazon multiple ways to benefit from rising AI spending while supporting growth across its broader business.
Why Rosenblatt Likes Amazon
Devitt called Amazon "one of the most resilient leaders" in Rosenblatt's coverage. He believes Amazon's position in AI is still underappreciated, particularly as its cloud business continues to accelerate.
Amazon Web Services (AWS) grew 37% year-over-year in the second quarter, marking its fifth consecutive quarter of accelerating growth. Devitt expects AWS growth to reach 45% by the end of 2026, compared with the Street's 38% estimate.
He also expects AWS revenue to exceed $335 billion by 2028. According to Devitt, companies increasing their AI spending are also using more of Amazon's broader cloud services, driving additional demand for AWS.
Devitt believes Amazon's combination of its own computing infrastructure and large physical fulfillment network gives the company an advantage that extends beyond AI.
Alphabet Also Has AI Upside
Devitt is also bullish on Alphabet. He believes concerns about Google's Search business have largely been reflected in the stock, while its role as a major AI cloud provider is becoming more important.
The analyst expects Google Cloud to remain a key growth driver. Stronger cloud profits, along with growing revenue from its custom Tensor Processing Units (TPUs), could support further upside for Alphabet's valuation.
However, Devitt sees one key risk for GOOGL stock. A slowdown in Google Cloud growth could hurt his investment thesis more than renewed concerns about Search.
AMZN or GOOGL: Which Stock Is Wall Street's Favorite?
The TipRanks Stock Comparison Tool shows that both AMZN and GOOGL have a Strong Buy consensus rating from analysts. AMZN's average price target implies 25.6% upside, and GOOGL's average price target implies 22.5% upside.