Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN) are collecting billions from the AI boom, but investors are paying almost the same multiple for two very different earnings engines. Yahoo Finance's most recently available valuation snapshots put Microsoft at 25.13 times forward earnings and Amazon at 23.64 times. That narrow gap begs investor attention because Microsoft's enterprise software produces enormous profits alongside Azure, while Amazon is using profits from AWS and its retail operations to fund an infrastructure buildout that has pushed free cash flow below zero. The question investors need to look into is not which cloud provider is growing faster.
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