Why I Am Buying Alphabet Over Microsoft

Forward Analytics169 FollowersFollow5ShareSavePlay(11min)CommentsSummaryAlphabet is recommended as a buy over Microsoft due to superior revenue growth and investor tolerance for high capital expenditure.GOOG’s 2025 outperformance is driven by 34% YoY Google Cloud growth and a growth-sensitive profile favored in the current AI cycle.MSFT’s returns are more tightly linked to margin expansion, but aggressive CapEx is penalized by the market, threatening short-term margin growth.GOOG trades at a 19% P/S discount, offering significant upside if AI-driven growth persists, while MSFT faces stricter capital allocation expectations. Kenneth Cheung/iStock Unreleased via Getty Images Setting The Stage As of today (17th December, 2025), Microsoft Corporation (MSFT) and Alphabet Inc. (GOOG) are two of the most dominant forces in the technology arena. Both boast market caps above $3 trillion and are keyThis article was written byForward Analytics169 FollowersFollowI'm a seasoned financial analyst with a passion for puzzling out the complexities of the financial world. As a former writer for Fade The Market on Seeking Alpha, I diligently worked to provide insightful analysis and well-researched articles on various investment opportunities. However, I am no longer involved in analyzing, submitting, or commenting on articles for Fade The Market. With a vast experience, I have honed my expertise in evaluating market trends, analyzing investment opportunities, and providing strategic recommendations to optimize financial portfolios.Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.