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It's Alphabet vs. Amazon in the finals of our stock bracket. Here's the bull case for each.

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  • Business Insider has been running a bracket in order to crown the top mega-cap tech stock for the next decade.
  • The championship is set: third-seeded Alphabet versus fifth-seeded Amazon.
  • Detailed below are the bull cases for both companies.

It's official: the inaugural First Trade stock bracket championship is set.

In a runaway victory, third-seeded Alphabet (68%) was voted as the stock you'd rather own over the next 10 years, beating Apple (32%). It will now take on Amazon in the finals.

With the match-up locked in, which stock would you rather own for the next 10 years? (3) Alphabet vs. (5) Amazon. Cast your vote here.

Are you still undecided? Fear not. We've got both sides of the debate covered. I'll be making the case for Alphabet, and I've brought in Steve Russolillo, BI's chief news editor, to argue in favor of Amazon.

The chart below is for reference. It shows that, over the past five years, Alphabet has trounced Amazon.

But that's the past. We're talking about the next 10 years in the AI era. Here are the bull cases for both stocks:

Why Joe picks Alphabet

I'll admit I hadn't been thinking about Alphabet much during the AI revolution. That is, until the legacy tech titan stormed the gates of the AI trade last September with the heralded release of its Gemini 3 chat.

The company also won a landmark antitrust ruling that same month. The removal of that regulatory overhang has helped it push more aggressively into AI in the period since.

Alphabet has been inking partnerships and spending heavily on projects expected to be lucrative in the long term. It's also using AI to build competitive moats around its search, ad, and productivity-tool businesses.

And AI is just one piece of the pie. Alphabet also has high-margin businesses in Google Search and YouTube. Google Cloud is growing, and Waymo gives the company a high-upside foothold in the self-driving-car space. It's an AI titan, and it's diversified.

But don't take my word for it. Berkshire Hathaway — which has been historically allergic to high-flying tech stocks — bought into the stock last year around the time of the antitrust ruling.

With the stock down from its highs because of the Iran war, it's a great time to scoop up shares for the long run.

Why Steve picks Amazon

Everyone loves an underdog story.

No. 5-seed Amazon has already knocked off Microsoft (a four seed) and toppled top-ranked Nvidia in our BI stock bracket.

Here's the case for why its Cinderella run should continue.

Under CEO Andy Jassy, Amazon has undergone a hardcore culture reset, one that investors are underestimating. Jassy has slashed corporate headcount, stripped layers of middle management, and shut underperforming divisions. As he puts it, he wants Amazon to be "the world's largest startup at our size."

At the same time, Amazon is going all in on AI. The company is planning roughly $200 billion in capital spending this year, up 60% from a year ago.

That kind of spending tends to raise eyebrows. It shouldn't. Amazon has a long history of prioritizing investment over profits, a strategy that has worked. Earlier this year, it surpassed Walmart as the world's largest company by revenue.

Then there's the stock itself. It is a rare underperformer in the Big Tech world, lagging most of its peers in recent years, including Alphabet by a wide margin.

True bargains in tech stocks are hard to find. Amazon is one of them.

Which stock would you rather own for the next 10 years: (3) Alphabet or (5) Amazon? Cast your vote here.

Read the original article on Business Insider





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