Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOGL) have reached such a point in their AI investment cycle where their cloud divisions are becoming more profitable, just as the companies are spending so much on infrastructure that cash flow looks considerably less impressive. The stocks, meanwhile, are priced remarkably alike. Yahoo Finance's latest available valuation data puts Amazon at 23.64 times forward earnings and Alphabet at 22.83 times. That small premium for Amazon raises a better question than which company has the bigger cloud business: which company is getting more earnings from the money it is putting to work?
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