“`html
Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL, GOOG) have seen their shares decline a few percentage points year-to-date, despite a 2% return for the S&P 500. Analysts project significant gains: Ivan Feinseth at Tigress Financial estimates a target price of $305 for Amazon, implying a 44% upside from its current price of $212, equating to a market value of $3.2 trillion. Paul Chew at Phillip Securities sets a target of $250 for Alphabet, indicating a 45% upside from its current price of $172, equivalent to a $3 trillion market value.
Amazon’s growth is driven by its dominant position in the U.S. retail e-commerce market, holding 41% market share, and AWS, which commands 29% of the public cloud segment. Conversely, Alphabet leads in digital advertising and recently capitalized on AI trends with innovative tools and services. However, potential antitrust actions loom over both companies, particularly Alphabet, which is facing lawsuits regarding its market position.
Wall Street anticipates Amazon’s earnings will grow by 10% annually through 2026, while Alphabet is projected to see a 7% increase in adjusted earnings over the same period. Current valuations for Amazon stand at 34 times earnings, while Alphabet’s is at 19 times sales.
“`
