What’s the most attractive cloud computing stock right now for investors?
Seeking Alpha analysts Jack Bowman and KM Capital weigh in.
Jack Bowman: My favorite cloud stock, especially after the 10% tumble from last month’s high, has to be Amazon (AMZN). Their AWS is an absolute beast of a product, and I am more bullish on them than Alphabet/Google’s (GOOG) (GOOGL) cloud operations because of Google’s insistence on pushing Gemini.
Amazon’s AI models are prosumer and business-focused, targeting their AWS clients exclusively. This will give Amazon a cost-efficiency advantage with its Nova AI (one of the few issues we’re talking about in AI right now, I feel) over models that also serve consumers, like Microsoft’s (MSFT) Co-Pilot and Google’s Gemini. It will be a tight race no matter what, but the prioritization of B2B models with little to no customer-facing time spent is a huge positive.
Having native AI for your cloud infrastructure that can navigate it well and execute multiple steps — currently a barrier exists at 10+ steps — will be a massive differentiator in competing with other cloud services.
KM Capital: Alphabet/Google (GOOGL) is the most attractive cloud computing stock at the moment for me due to the solid mix of catalysts surrounding the company. Google’s Gemini 3 release was extremely successful and really threatens OpenAI’s (OPENAI) ChatGPT dominance, which underscores the company’s potential to become a generative AI cornerstone.
Meanwhile, there is also a vast digital advertising business growing rapidly even at its massive scale, generating strong cash flows. These cash flows are reinvested not only in AI but also in Waymo expansion, another solid bet in the rapidly growing robotaxi market. Given Google’s historically strong ROIC, I am convinced that investments in high-growth markets will pay off over the long haul.