Are GOOG and AMZN A good buy ?
7/2/2025 07:56am
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The deep research logic is organized as follows:
Okay, let's tackle whether GOOG and AMZN are good buys. First, I need to look at the data provided in the references.
Starting with the financial metrics from Reference 1. GOOG has a P/E ratio of 18.08, which is lower than AMZN's 33.03. Lower P/E might indicate GOOG is undervalued compared to AMZN. But I should check revenue growth. GOOG's revenue growth is 11.77% YoY, while AMZN's is 10.49%. So GOOG is growing slightly faster. Net income growth is much higher for GOOG at 28.27% vs. AMZN's 88.29%. Wait, that's a big jump for AMZN. But looking at the numbers, AMZN's net income growth is 88.29%, which is impressive. However, AMZN's EPS is $1.9, which is lower than GOOG's $2.17. Dividend-wise, GOOG has a 0.46% yield, but AMZN doesn't pay dividends. So GOOG offers some income, but it's minimal.
Next, the technical indicators from References 2-5. GOOG's MACD is 0.01, RSI 61.2, KDJ 90.54. AMZN's MACD is 0.55, RSI 64.64, KDJ 91.87. Both have high RSI and KDJ, indicating they might be overbought. However, GOOG's MACD is near zero, suggesting a possible bullish crossover. AMZN's MACD is positive but not as strong as GOOG's. Moving averages from References 3-5 show GOOG is below its 20-day and 50-day MA, while AMZN is above. This could mean GOOG is undervalued compared to its short-term averages, but AMZN is showing strength.
Looking at the news articles (References 8-17), GOOG has strong free cash flow and is investing in AI chips and cloud services. AMZN is expanding delivery services and cloud partnerships. Both companies have strategic initiatives, but GOOG's focus on AI and cloud might give it an edge in long-term growth. However, AMZN's expansion into rural areas and healthcare could drive future revenue.
Analyst targets from Reference 7 show AMZN has a high upside target of $305, which is a 38% increase from its last price. GOOG's targets aren't listed, but the articles mention a $212 fair value, which is a 19% upside from its last price. This suggests AMZN has more upside potential, but it's also more speculative.
Risks include regulatory issues (References 44-45) for both companies, especially antitrust lawsuits. GOOG faces competition in AI from Microsoft, while AMZN deals with logistics and delivery challenges. Both have high debt levels, but GOOG's cash reserves are stronger.
In conclusion, GOOG seems more stable with better financial metrics and a dividend, while AMZN offers higher growth potential but with more risks. The decision depends on the investor's risk tolerance and investment horizon.
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**Conclusion**
**GOOG (Alphabet Inc.) and AMZN (Amazon.com Inc.) present mixed opportunities** for investors, with GOOG offering stability and value while AMZN reflects high growth potential but elevated risks. Here’s a detailed breakdown:
---
### 📊 **Key Analysis**
#### 1. **Financial Health**
| Metric | GOOG (Alphabet) | AMZN (Amazon) |
|----------------------------|------------------|----------------|
| **P/E Ratio (TTM)** | 18.08 | 33.03 |
| **Revenue Growth (YoY)** | 11.77% | 10.49% |
| **Net Income Growth (YoY)**| 28.27% | 88.29% |
| **EPS (Basic)** | $2.17 | $1.90 |
| **Dividend Yield** | 0.46% | 0% |
| **Dividend Duration** | 1 Year | N/A |
**Implications**:
- **GOOG**: Lower P/E, higher net income growth, and a modest dividend make it more attractive for value investors.
- **AMZN**: Higher P/E reflects growth expectations, but no dividends and higher revenue volatility pose risks.
---
#### 2. **Technical Indicators**
| Metric | GOOG (Alphabet) | AMZN (Amazon) |
|----------------------------|------------------|----------------|
| **MACD** | 0.01 | 0.55 |
| **RSI** | 61.2 | 64.64 |
| **KDJ** | 90.54 | 91.87 |
| **Bollinger Bands** | 174.01 | 213.71 |
**Implications**:
- **GOOG**: Near-zero MACD suggests neutral momentum, while RSI/KDJ indicate potential overbought conditions.
- **AMZN**: Positive MACD and higher RSI/KDJ suggest bullish momentum but caution against overextension.
---
#### 3. **Market Context**
- **GOOG**:
- **AI Leadership**: Partnerships with OpenAI and Lockheed Martin for AI chips and defense solutions .
- **Cloud Growth**: Google Cloud revenue surged 28% YoY .
- **Risks**: Regulatory scrutiny (e.g., EU antitrust) and competition from Microsoft .
- **AMZN**:
- **Expansion**: Rural delivery networks and healthcare services in India .
- **Cloud Dominance**: AWS partnerships with Veeva and BeyondTrust .
- **Risks**: High debt, logistics inefficiencies, and geopolitical tensions (e.g., Canada’s digital tax standoff) .
---
#### 4. **Analyst Targets**
- **GOOG**: Average price target of **$201.56** (13% upside from $176.91) .
- **AMZN**: Average price target of **$305** (38% upside from $220.46) .
---
### 📉 **Why GOOG Might Be Safer**
1. **Valuation**: Lower P/E and stable cash flow make it less speculative.
2. **Dividends**: 0.46% yield provides income stability.
3. **AI/Cloud Dominance**: Strategic partnerships and cloud growth position it for long-term resilience.
### 📈 **Why AMZN Might Be Riskier but Rewarding**
1. **Growth Potential**: 88.29% net income growth and rural expansion could unlock new markets.
2. **Innovation**: AWS leadership and healthcare ventures align with future trends.
3. **High Upside**: Analyst targets suggest 38% price appreciation.
---
### 📊 **Final Recommendation**
- **For Conservative Investors**: **GOOG** is the safer bet due to its stability, dividends, and AI leadership.
- **For Growth-Oriented Investors**: **AMZN** offers higher upside but requires tolerance for volatility and regulatory risks.
**Final Rating**:
- **GOOG**: **Hold with Long-Term Upside** 📈
- **AMZN**: **Speculative Buy with High Risk** 🚨
|code|Ticker|Name|Date|P/E(TTM)|market_code|
|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|20240701|27.58641|185|
|AMZN|AMZN.O|Amazon.com|20240701|54.894066|185|
|GOOG|GOOG.O|Alphabet C|20240702|27.90341|185|
|AMZN|AMZN.O|Amazon.com|20240702|55.673495|185|
|GOOG|GOOG.O|Alphabet C|20240703|28.020041|185|
|AMZN|AMZN.O|Amazon.com|20240703|55.002629|185|
|GOOG|GOOG.O|Alphabet C|20240705|28.703384|185|
|AMZN|AMZN.O|Amazon.com|20240705|55.673495|185|
|GOOG|GOOG.O|Alphabet C|20240708|28.482083|185|
|AMZN|AMZN.O|Amazon.com|20240708|55.475854|185|
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|2024 Q2|31.25|1.89|185|
|AMZN|AMZN.O|Amazon.com|2024 Q2|93.84615384615384|1.26|185|
|GOOG|GOOG.O|Alphabet C|2024 Q3|36.7741935483871|2.12|185|
|AMZN|AMZN.O|Amazon.com|2024 Q3|52.12765957446809|1.43|185|
|GOOG|GOOG.O|Alphabet C|2024 Q4|31.097560975609756|2.15|185|
|AMZN|AMZN.O|Amazon.com|2024 Q4|86.00000000000001|1.86|185|
|GOOG|GOOG.O|Alphabet C|2025 Q1|48.677248677248684|2.81|185|
|AMZN|AMZN.O|Amazon.com|2025 Q1|62.24489795918369|1.59|185|
|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|2024 Q2|13.589083695244222|8.4742E10|185|
|AMZN|AMZN.O|Amazon.com|2024 Q2|10.115862869559393|1.47977E11|185|
|GOOG|GOOG.O|Alphabet C|2024 Q3|15.092642092498664|8.8268E10|185|
|AMZN|AMZN.O|Amazon.com|2024 Q3|11.038348371225092|1.58877E11|185|
|GOOG|GOOG.O|Alphabet C|2024 Q4|11.770362646275055|9.6469E10|185|
|AMZN|AMZN.O|Amazon.com|2024 Q4|10.491230341078248|1.87792E11|185|
|GOOG|GOOG.O|Alphabet C|2025 Q1|12.03764635766523|9.0234E10|185|
|AMZN|AMZN.O|Amazon.com|2025 Q1|8.620292646166083|1.55667E11|185|
|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|2024 Q2|28.58776132404181|2.3619E10|185|
|AMZN|AMZN.O|Amazon.com|2024 Q2|99.77777777777777|1.3485E10|185|
|GOOG|GOOG.O|Alphabet C|2024 Q3|33.58220326070395|2.6301E10|185|
|AMZN|AMZN.O|Amazon.com|2024 Q3|55.15740459560684|1.5328E10|185|
|GOOG|GOOG.O|Alphabet C|2024 Q4|28.273795137042583|2.6536E10|185|
|AMZN|AMZN.O|Amazon.com|2024 Q4|88.29066265060241|2.0004E10|185|
|GOOG|GOOG.O|Alphabet C|2025 Q1|45.97244527089849|3.454E10|185|
|AMZN|AMZN.O|Amazon.com|2025 Q1|64.19327006039688|1.7127E10|185|
|code|Ticker|Name|Date|Dividend Yield (TTM)|market_code|
|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|20240701|0.10872350804921677|185|
|GOOG|GOOG.O|Alphabet C|20240702|0.10748834467606237|185|
|GOOG|GOOG.O|Alphabet C|20240703|0.10704093067933189|185|
|GOOG|GOOG.O|Alphabet C|20240705|0.104492602625547|185|
|GOOG|GOOG.O|Alphabet C|20240708|0.10530449391012181|185|
|GOOG|GOOG.O|Alphabet C|20240709|0.10532661205629071|185|
|GOOG|GOOG.O|Alphabet C|20240710|0.10411294508460502|185|
|GOOG|GOOG.O|Alphabet C|20240711|0.10709236518953551|185|
|GOOG|GOOG.O|Alphabet C|20240712|0.10739051290288039|185|
|GOOG|GOOG.O|Alphabet C|20240715|0.10658589723152134|185|
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