Amazon and Alphabet Set to Challenge Apple's Market Dominance

Wall Street analysts predict substantial upside for both Amazon and Alphabet, potentially surpassing Apple's $2.9 trillion valuation. With strong earnings reports, both companies are positioned for significant growth in 2026.

Date: 23-04-2025

AI Rating: 7

Apple leads the market with a staggering $2.9 trillion market cap. However, bullish target prices set by analysts for Amazon and Alphabet indicate a fierce battle for market supremacy. Amazon is projected to achieve a $3 trillion market cap by 2026, fueled by its strong earnings growth and innovative AI capabilities. In its recent financial report, Amazon reported a remarkable 10% revenue increase to $187 billion and a gross earnings growth of 86% to $1.86 per share. Although initial guidance for Q1 is disappointing due to foreign exchange pressures, the long-term growth outlook remains positive, with a projected earnings growth of 13% in 2025 and a PE ratio that may expand further. This combination of factors supports Amazon's potential growth, earning it a rating of 7 for EPS and revenue growth due to its solid financial performance and market position. On the other hand, Alphabet reflects mixed results, having reported a 12% revenue increase to $96 billion, but missing the consensus revenue estimates. However, the operating margin still expanded by 5 percentage points, and GAAP earnings increased by 31% to $1.64 per share. This positions Alphabet’s earning potential positively despite the revenue miss, supported by expectations of 9% earnings growth in 2025. Analysts expect a favorable multiple expansion to achieve a $3 trillion market cap within the same timeframe. The antitrust lawsuits present a risk, but past performance of exceeding consensus estimates by an average of 8% in recent quarters indicates a robust operational strength, warranting a rating of 6 for EPS and 7 for revenue outlook under challenging circumstances. Thus, both companies are set for substantive growth, posing competitive pressure on Apple's leading position.

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