Tech giants Alphabet (GOOGL) and Amazon (AMZN) released their Q1 2026 earnings reports yesterday and passed with flying colors. Notably, five-star-rated analyst Doug Anmuth at JPMorgan raised his price targets on GOOGL and AMZN stocks, while reaffirming his Buy ratings. Following the results, GOOGL stock is up by 7.5% in pre-market trading on Friday, while AMZN shares gained almost 3%.
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Trade AMZN with leverageFor context, Amazon reported revenue growth of 17% to $181.5 billion, along with a record operating margin of 13.1%. Its cloud business, AWS, saw revenue jump 28% to $37.6 billion, marking its fastest growth rate in the past 15 quarters. Meanwhile, Alphabet reported EPS growth of 82% year over year to $5.11, easily beating expectations. Revenue rose 22% to $109.9 billion, marking its 11th consecutive quarter of double-digit growth.
Let’s dig deeper.
GOOGL Gets Price Target of $460
Anmuth raised his price target for GOOGL stock to $460 from $395 and kept a Buy rating. He highlighted that Google’s AI business is delivering real results across multiple areas. For instance, Google’s paid subscriptions reached 350 million as more users signed up for AI-powered services. Meanwhile, Gemini, Google’s AI model, is also growing fast and now processes more than 16 billion tokens per minute.
Overall, Search revenue grew 19%, and Cloud revenue surged 63% in Q1. Anmuth believes Google is clearly benefiting from its heavy AI investments, with strong demand for AI tools in both business and consumer products.
Additionally, Anmuth noted that Google will need to keep spending heavily on data centers and AI infrastructure, which could pressure short-term cash flow. Still, he believes these investments will drive stronger revenue and profits over time, making Alphabet one of its top stock picks.
JPMorgan Raises AMZN Price Target to $330
For Amazon, Anmuth raised his price target to $330 from $280 with a Buy rating. He noted that AWS delivered 28% growth, its strongest performance in 15 quarters. Anmuth expects that momentum to continue, projecting AWS growth of 32% in 2026 and 30% in 2027, with the possibility of even stronger results based on its growing backlog.
He also highlighted Amazon’s strong position in AI infrastructure. Its custom chips, including Trainium and Graviton, are becoming more important as companies invest more in AI. But he believes many investors are still underestimating how valuable Amazon’s chip strategy could be for future AWS growth and long-term profits.
Overall, Anmuth is more positive on Amazon after earnings and has raised his 2026 and 2027 forecasts, increasing sales estimates by around 2% to 3%, operating income by 11% to 12%, and GAAP earnings per share by 7% to 12%.
GOOGL or AMZN: Which Tech Stock Is the Better Buy, According to Analysts?
Using TipRanks’ Stock Comparison tool, we compared GOOGL and AMZN across key metrics to help investors decide which stock is the better buy. According to analysts, both stocks are rated as Strong Buys. AMZN stock offers higher upside of 18.4%, while GOOGL has 7% upside potential.
