Wall Street Analysts Favor Amazon and Alphabet Amid Tech Growth

Wall Street analysts are currently favoring Amazon and Alphabet as promising investments amid an overall positive outlook for the tech sector. According to CNBC, Amazon has demonstrated strong performance in its recent Q3 results, particularly within its Amazon Web Services, or AWS, cloud unit. Mizuho analyst Lloyd Walmsley increased his price forecast for Amazon from $300 to $315, maintaining a buy rating, and noted an optimistic outlook for AWS revenue growth, projecting an increase from 20% in Q3 to 21% in Q4 2025 and 22% in Q1 2026. Walmsley also highlighted improvements in Amazon's retail operations due to enhanced automation and logistics, contributing to a favorable valuation compared to historical ranges. The upcoming AWS ReInvent Conference is expected to keep investor sentiment positive, according to Walmsley.

In addition to Amazon, Alphabet, the parent company of Google and YouTube, is also attracting attention. The Financial Times highlights that Alphabet reported better-than-expected third-quarter results, with AI technologies driving significant growth in its cloud business. JPMorgan analyst Doug Anmuth raised his price target for Alphabet from $300 to $340, emphasizing that Q3 was the first time the company crossed the $100 billion revenue mark for a quarter. Anmuth noted double-digit growth across all major business segments and indicated that the introduction of AI search formats could shift investor perspectives on the company's transition to AI. He also pointed out that Alphabet's Google Cloud backlog surged to $155 billion, which he believes does not account for gains from a new partnership with Anthropic, hinting at further increases in the backlog by the end of Q4.

Both Amazon and Alphabet are seen as strong plays in the current tech landscape, with analysts expressing confidence in their growth trajectories. Walmsley and Anmuth's bullish outlooks reflect broader trends in technology investing, where many are looking for stocks that exhibit robust fundamentals and growth potential, particularly in the AI space. The analysts' recommendations come at a time when tech stocks are under scrutiny due to concerns over high valuations, with the risk of an AI bubble looming. However, the continued strong performance from Amazon and Alphabet suggests that these companies are well-positioned to capitalize on advancements in AI, making them attractive options for investors. As tech stocks show renewed promise, investor interest in Amazon and Alphabet is likely to maintain momentum into the coming quarters, supported by their recent positive earnings reports and future growth prospects.