ZACKS·2026-02-03 22:15Core Insights - The upcoming quarterly results from the "Mag 7" tech giants, specifically Alphabet and Amazon, are highly anticipated, with Alphabet's report due on February 4 and Amazon's on February 5 [1][2] - Investors are particularly focused on the growth of cloud services from both companies, as they compete in the global cloud-computing market [2] Alphabet's Q4 Expectations - Alphabet's Q4 sales are projected to reach $94.7 billion, marking a 16% increase from $81.62 billion a year ago [3] - Google Cloud revenue is expected to be $16.25 billion, reflecting a 36% increase from $11.95 billion in Q4 2024 [3] - EPS for Alphabet is anticipated to rise 20% to $2.58 compared to $2.15 in the same quarter last year [3] - Alphabet has consistently exceeded EPS expectations for 11 consecutive quarters, with an average earnings surprise of 18.74% in the last four reports [4] Amazon's Q4 Expectations - Amazon's Q4 sales are expected to hit a record $211.56 billion, a 12% increase from $187.79 billion last year [6] - AWS revenue is projected to be $35.02 billion, a 21% increase from $28.78 billion in the same quarter last year [6] - EPS for Amazon is expected to rise 6% to $1.98 from $1.86 per share a year ago, with a history of exceeding EPS expectations for 12 straight quarters and an average earnings surprise of 22.47% [7] Performance Comparison - Over the past year, Alphabet's stock has surged more than 80%, attributed to growth in AI-driven businesses and Google Cloud, while Amazon's stock has seen a 2% decline [10] - Amazon's stock currently trades under $240 at a P/E ratio of 30.7X forward earnings, while Alphabet trades near $340 at a P/E of 31X [11] - EPS growth projections for Amazon are slightly higher for fiscal 2026 at 10%, with FY25 EPS expected to rise nearly 30% to $7.18 [14] Bottom Line - Strong Q4 results from both companies could alleviate CapEx concerns among investors, with Amazon currently rated as a Zacks Rank 2 (Buy) and Alphabet as a Zacks Rank 3 (Hold) [17]