The Motley Fool·2025-04-23 08:00Amazon - Amazon reported a 10% increase in revenue to $187 billion for the fourth quarter, with GAAP earnings soaring 86% to $1.86 per diluted share [3] - The investment thesis for Amazon highlights its dominance in three markets: the largest online marketplace outside of China, the third-largest ad tech company, and Amazon Web Services (AWS) as the largest public cloud services provider [4] - AWS is positioned to capitalize on artificial intelligence (AI) opportunities, leveraging a larger customer base than competitors and developing custom chips and features like the generative AI platform Bedrock [5] - Amazon is integrating generative AI and robotics in its e-commerce operations to enhance revenue growth and operational efficiency [6] - Wall Street anticipates a 13% increase in Amazon's earnings by 2025, with a potential market value of $3 trillion by 2026 if the price-to-earnings (P/E) ratio expands to 35 [7] Alphabet - Alphabet's fourth-quarter results showed a 12% increase in total sales to $96 billion, with GAAP earnings rising 31% to $1.64 per diluted share, despite missing revenue estimates [8] - The investment thesis for Alphabet focuses on its strength in advertising and cloud services, being the largest ad tech company and the third-largest public cloud provider [9] - Alphabet is effectively utilizing AI to enhance search and advertising, with new features like Gemini leading to a 20-fold increase in AI cloud developer tool usage [9] - The company has growth potential through its autonomous driving technology subsidiary, Waymo, which is expanding robotaxi services in major U.S. cities [10] - Despite facing antitrust lawsuits, Wall Street estimates a 9% growth in Alphabet's earnings by 2025, with a potential market value of $3 trillion by 2026 if the P/E multiple expands to 26 [13]