【🎁Earnings Showdown】Google may once again exceed expectations, while Amazon is expected to 'explode again'—whose story do you favor?

This week, all eyes are on the earnings battle between two trillion-dollar giants: Google and Amazon are set to release their latest earnings after market close on February 4 (Wednesday) and February 5 (Thursday), Eastern Time, respectively.

Google Q4 2025 Earnings Live Broadcast (Simultaneous Interpretation)
Amazon Q4 2025 Earnings Live Broadcast (Real-time Interpretation)

Over the past year, propelled by its AI narrative, $Alphabet-A (GOOGL.US)$$Alphabet-C (GOOG.US)$ compared with $Amazon (AMZN.US)$ , which has lagged due to growth concerns, creating a stark contrast.This earnings competition will test whether Google's 'future premium' remains as solid as ever, or if Amazon’s 'current value' is poised for a reevaluation.

🔎Google: Will paying a premium for 'AI tomorrow' lead to an expensive capital expenditure plan?

Bank of America Securities noted,Exceeding market expectations in both revenue and earnings per share is almost a certainty.The core drivers are clearly visible, benefiting on one hand fromthe overall stability of the digital advertising marketand on the other hand, stemming fromthe strong momentum of its flagship AI model Gemini 3.0which is expected to push the growth rate of the search engine business up to 15%-16%, and YouTube’s growth rate to 14%-15%, both significantly surpassing market consensus.

However, this anticipated report card may no longer be the main highlight.After Meta significantly raised its capital expenditure guidance, the market is now holding its breath for Google's response, which will determine whether the high valuation premium can be justified.Bank of America Securities predicts that Google’s capital expenditure in 2026 could reach as much as $139 billion, a nearly 50% year-over-year surge, significantly exceeding current market expectations.Investors are eagerly awaiting management's explanation to determine whether such aggressive investment on this scale is a necessary move to maintain its long-term leadership in the AI field, or whether it will excessively erode profit margins and free cash flow in the short term?

Ask Futubull AI: Gemini is 'exploding in popularity'; which performance metrics will reflect its success?

🛒 Amazon: Called 'quite cheap,' can its earnings ignite room for stock price revaluation?

Unlike Google, which carries the market’s romantic aspirations, Amazon is quietly awaiting a “value discovery.”Nova Capital noted that Amazon appears “quite cheap” at its current share price, issuing a “Buy” rating with an optimistic forecast of over 28% upside potential in the next 12 months.

First, Amazon has demonstrated consistently predictable ability to exceed earnings expectations.The company has set a record of beating market EPS forecasts for 11 consecutive quarters, suggesting that market analysis models may have persistently underestimated its operating leverage.

Secondly, its ambitious capital expenditure is directly targeting the most profitable engine.

Amazon's capital expenditure is projected to exceed $150 billion by 2026, leading among tech giants. The key point is that these investments are being fully utilized to double AI computing infrastructure capacity to meet the currently undersupplied AWS cloud services.This means the investment isn't a gamble on the future but an acceleration of production expansion, turning existing high-profit backlogs into tangible revenue on financial statements.

The analysis points out that among mega-cap companies,Amazon’s valuation is near or below average, yet its projected EPS growth rate over the next two years is the highest among peers.This 'high growth, low valuation' mismatch forms the core logic for significant stock revaluation potential.

Interestingly, although both giants are engaged in a capital expenditure race at the tens-of-billions-of-dollars level, their underlying logic is completely different, creating dramatic tension for this contest:

🤖Google ($139 billion in capital expenditure): Investing in an uncertain but highly imaginative AI future, aiming to capture the next generation of technological high ground and maintain its premium narrative.

🚀Amazon ($150 billion in capital expenditure): Investing in already 'sold-out' and highly profitable real demand (AWS), aiming to convert confirmed orders into stronger earnings growth and correct market underestimation.

Therefore, this is not just a comparison of quarterly performance, but also a collision between 'narrative premium' and 'value reassessment.'Whose performance will win more favor in the market? Feel free to share your predictions~👇👇

🎁【Prize Activity】

🏆 Event One: Big Rally Competition 🎯

Select the stock you believe will have the highest single-day gain after earnings are released. Fellow investors who predict correctly will share the prize.10,000 points!

(For example, if 10 fellow investors guess correctly, each person will receive 1,000 points; activity rewards will be distributed uniformly after this earnings season ends!)

🏆 Activity Two: Speak Your Mind 🎯

Do you agree more with Google's AI premium logic or Amazon's value reassessment logic? Why?

Leave your analysis in the comments section,Leave a comment (30 words or more) and make it reasonable to qualify for the reward.66 points!

Note: Both Event One and Event Two will end at 5:00 AM Beijing Time on February 5; rewards from both events can be stacked and will be distributed uniformly after this earnings season ends.

Tech giants face their earnings test—how to deploy strategies easily? "Earnings Express" powered by AI highlights key points, follow three steps to establish an options strategy>>

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