The US stock market has certainly struggled throughout the first two months of the year. However, the silver lining is that the falling value can provide an excellent entry point for companies that have a significant turnaround ahead of them. That being said, between Alphabet (GOOGL) and Amazon (AMZN), which stock is the better buy for March 2025?
The two Magnificent Seven stocks are among the most intriguing in the tech sector. Moreover, they both boast significant and prominent brand names. For Alphabet, the Google and YouTube brands are unmatched. Moreover, Amazon is the e-commerce juggernaut that has been the king of diversification. But which stock is the better buy this month?
Alphabet or Amazon: Which Stock Is The Better Buy This Month?
Also Read: Alphabet (GOOGL): Why It May Be Most Undervalued Stock of 2025
A struggling US stock market doesn’t deter the fact that many companies are projected to have major turnarounds this year. Chief among them are tech firms with an eye toward AI development. That being said, two major competitors appear to be Alphabet (GOOGL) and Amazon (AMZN), but which is the better buy for March?
Breaking down both companies, and there’s reason to be excited. First, Alphabet boasts two key platforms that could see huge and immediate benefits from AI: Google and YouTube. Moreover, it is already building on an unprecedented ad business.
Google has generated $54 billion of the company’s total $96 billion revenue in Q4. Moreover, Alphabet generated $100 billion in net profit on $340 billion in revenue last year from advertising alone. Although there are questions about the ad market in a struggling economy, the company could be protected. In 2022, when the ad market was falling, GOOGL still grew 10%.
Also Read: Amazon Stock Eyes Record 2025 as AWS Leads Market Set for $2T
Alternatively, Amazon is a strong consumer brand, with more than 200 million customers paying for Prime benefits. However, as significant as its retail sector is, its true moneymaker is its Amazon Web Services (AWS) business. Its cloud services provider is its fastest-growing entity, jumping 19% year over year in revenue.
What’s all the more impressive is that although its revenue only makes up 15% of its business, AWS makes up nearly half of the company’s profits. The company’s net income jumped to $59 billion last year while its revenue reached $638 billion. Moreover, its earnings are projected to grow at a compound rate of 21%.
Which is The Better Bet?
With such strong brands, establishing which is the better bet is quite difficult. Alphabet (GOOGL) is currently trading at $162 and has fallen 12.58% over the last month. However, its median price target stands at $220, representing a 35% upside from its current position. Additionally, 79% of CNN’s 68 surveyed analysts have a buy rating on the stock.
On the other side, Amazon is trading at $194 but has dropped more than 14% over the last 30 days. Moreover, it boasts a median price target of $270, which would represent an increase of more than 39%. The 75 surveyed analysts have given that company a 95% buy rating.
In the end, it is Amazon that appears to be the stronger investment. It’s more expensive, but its upside remains even greater. Additionally, experts are aligned that the company has a greater chance of reaching its high-end price targets over the next 12 months. If that happens, it could reach highs above the $300 level.
