Amazon and Alphabet Expected to Reach $3 Trillion Market Value
Morgan Stanley analysts predict Amazon (NASDAQ: AMZN) will achieve a market value of $3.1 trillion within 12 months, while Phillip Securities forecasts Alphabet (NASDAQ: GOOGL) will reach $3 trillion. Currently, Amazon’s shares are priced at $233, with a target price of $300 reflecting a 34% upside, and Alphabet’s shares at $183, with a target price of $250 indicating a 37% upside.
Amazon is leveraging artificial intelligence to enhance revenue across its e-commerce, digital advertising, and AWS cloud sectors. Similarly, Alphabet, despite facing antitrust challenges, is recognized for its strong position in AI infrastructure and cloud services. The cloud market is projected to grow at 20% annually, which could benefit both companies significantly over the next several years.
Amazon’s and Alphabet’s earnings growth expectations are 10% and 8% annually, respectively, through 2026, but analysts believe the companies may outperform these estimates based on their market strengths and recent performance. Amazon has seen average earnings increases of 21% over the past six quarters, while Alphabet has achieved a 48% increase in its most recent quarter.
