AMZN vs MSFT: Amazon vs Microsoft Stock Comparison: AI Score, Valuation, Performance and Upside
Amazon and Microsoft are the two largest cloud infrastructure companies in the world. AWS leads in cloud market share; Azure is growing faster and has stronger enterprise AI monetisation through Copilot. Amazon's profit mix is improving toward higher-margin businesses (ads, AWS); Microsoft already operates at very high margins with a more software-oriented model.
Use this AMZN vs MSFT comparison to choose between the world's largest cloud platform (AWS + ads + retail) and the world's dominant enterprise software and AI platform (Azure + Microsoft 365 + Copilot). Both are compounders; the choice is between Amazon's higher near-term revenue growth potential and Microsoft's higher near-term margin quality.
MSFT holds the edge across 3 of 5 key metrics in this comparison. AMZN has delivered stronger 1-year price return (+14.82% vs -12.47%), though MSFT trades at the lower forward P/E (21.53x vs 24.94x). MSFT leads on both revenue growth (18.30%) and operating margin (46.33%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for MSFT (+34.63%) than for AMZN (+27.14%).
- →Want the world's largest cloud provider combined with a dominant e-commerce marketplace and growing advertising business
- →Value Amazon's total ecosystem — Prime, AWS, ads, logistics — as a compounding platform
- →Prefer higher near-term revenue growth potential as retail, AWS, and ads all scale together
- →Are comfortable with higher capex intensity during the AI infrastructure build-out phase
- →Want the world's leading enterprise software platform with Azure cloud growth on top
- →Value Copilot AI monetisation as a tangible, near-term revenue layer across Microsoft 365
- →Prefer higher operating margins and more predictable subscription revenue from enterprise contracts
- →Seek a dividend-paying mega-cap tech stock with a consistent capital return program
| Metric | AMZN | MSFT |
|---|---|---|
| AI score | 62.1 | 60.7 |
| AI rank | #145 | #173 |
| Latest close | $245.22 | $411.74 |
| 1M return | -10.07% | -0.81% |
| 6M return | +6.84% | -14.78% |
| 1Y return | +14.82% | -12.47% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AMZN | MSFT |
|---|---|---|
| 1Y ago | $11.3K (+13.0%) started 2025-06-09 | $8.71K (-12.9%) started 2025-06-09 |
| 5Y ago | $14.95K (+49.5%) started 2021-06-09 | $17.36K (+73.6%) started 2021-06-09 |
| 10Y ago | $67.4K (+574.0%) started 2016-06-09 | $101.09K (+910.9%) started 2016-06-09 |
Hypothetical — past performance does not guarantee future results.
| Metric | AMZN | MSFT |
|---|---|---|
| Market cap | $2.65T | $3.1T |
| Trailing P/E | 31.66 | 24.82 |
| Forward P/E | 24.94 | 21.53 |
| Price/Sales | 3.49 | 11.87 |
| EV/Revenue | 3.69 | 9.87 |
| Analyst target | $312.79 | $560.95 |
| Target upside | +27.14% | +34.63% |
| Metric | AMZN | MSFT |
|---|---|---|
| Revenue growth | 16.60% | 18.30% |
| Earnings growth | 74.80% | 23.40% |
| EPS growth | +74.80% | +23.40% |
| FCF margin | +1.32% | +11.63% |
| Operating margin | 13.14% | 46.33% |
| Profit margin | 12.22% | 39.34% |
| ROIC proxy | 24.29% | 34.01% |
| Return on equity | 24.29% | 34.01% |
| Dividend yield | N/A | 0.87% |
| Beta | 1.44 | 1.10 |
| Debt/equity | 53.30 | 30.27 |
| Current ratio | 1.18 | 1.28 |
| Quick ratio | 0.97 | 1.14 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AMZN | MSFT |
|---|---|---|---|
| 1Y | Growth | +13.02% | -12.91% |
| CAGR | +13.07% | -12.96% | |
| Sharpe ratio | 0.41 | -0.60 | |
| Max drawdown | 21.74% | 34.18% | |
| Max daily drop | 8.27% | 9.99% | |
| Max wkly drop | 14.09% | 14.43% | |
| 5Y | Growth | +49.47% | +67.84% |
| CAGR | +8.37% | +10.92% | |
| Sharpe ratio | 0.28 | 0.35 | |
| Max drawdown | 56.15% | 37.15% | |
| Max daily drop | 14.05% | 9.99% | |
| Max wkly drop | 20.35% | 14.43% | |
| 10Y | Growth | +574.01% | +795.02% |
| CAGR | +21.03% | +24.51% | |
| Sharpe ratio | 0.61 | 0.78 | |
| Max drawdown | 56.15% | 37.15% | |
| Max daily drop | 14.05% | 14.74% | |
| Max wkly drop | 20.35% | 16.36% |
| Category | AMZN | MSFT |
|---|---|---|
| Company | Amazon.com, Inc. | Microsoft Corporation |
| Sector | Consumer Cyclical | Technology |
| Industry | Internet Retail | Software - Infrastructure |
| Core business | Global technology and retail company. AWS is the world's largest cloud provider. Advertising is a $50B+ high-margin business. North America and International e-commerce provide scale. Prime membership, third-party marketplace, and logistics complete the ecosystem. | Global technology company. Azure is the #2 cloud provider. Microsoft 365 (Office, Teams) dominates enterprise productivity. GitHub, LinkedIn, Dynamics, and Xbox round out the portfolio. Copilot AI is embedded across all major products. |
| Investor focus | AWS revenue growth and margin expansion, advertising compound growth, North America retail margin improvement, and AI infrastructure ROI. | Azure growth rate, Microsoft 365 Copilot AI monetisation, operating margin trajectory, and capital return via buybacks and dividends. |
- →AWS is the #1 cloud provider globally — a dominant position in the infrastructure layer of the digital economy
- →Advertising is growing rapidly and carries software-like margins, diversifying Amazon's profit mix
- →Prime creates unmatched customer loyalty and enables cross-selling across retail, streaming, and services
- →Azure is the #2 cloud provider with strong enterprise relationships and AI workload momentum
- →Microsoft 365 is the global enterprise productivity standard — extremely sticky with low churn
- →Copilot AI integration across Microsoft's entire product suite positions it as the leading enterprise AI platform
- →Heavy AI and data center capex is significant — the market is watching whether AI revenue ramp justifies the spend
- →Retail e-commerce margins are structurally lower than cloud and ads, limiting blended margin expansion
- →Regulatory scrutiny of marketplace practices, logistics, and cloud market power
- →AI infrastructure capex is rising significantly — Microsoft is investing heavily to support Azure AI demand
- →Activision integration complexity and gaming segment margin management
- →Azure growth must sustain elevated rates to justify the AI infrastructure investment thesis
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.