Why prefer Amazon and Alphabet over Palantir?

It says both have large, established businesses that generate substantial profits, while Palantir's investment case is less established, even if it is one of the most exciting AI software companies.

What risks are flagged for Amazon and Alphabet?

Amazon's trailing 12-month free cash flow was negative $42.4 billion, and Alphabet's free cash flow turned negative at $9.1 billion after $51.4 billion in quarterly capex. Investors need to see returns justify the spending.

What should investors check before buying in a crash?

Examine whether the underlying businesses remain healthy, whether AI investment is producing meaningful returns, and whether the valuation offers enough room for error — not just a fallen share price.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AI9h agoNov 11, 2026, 19:01 JST

Amazon, Alphabet beat Palantir as safer AI crash buys, Motley Fool says

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3 Key Points

What happened
The Motley Fool argues Amazon and Alphabet are safer AI stocks than Palantir for the next market crash, citing their established, profitable businesses behind their AI ambitions.
Why it matters
Unlike companies whose investment case depends almost entirely on future AI demand, these two giants have diversified profit engines that could let investors buy them at more attractive prices after a sell-off.

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Context & Analysis

The piece frames the next market crash as a buying opportunity rather than a threat, but only for companies whose AI stories sit on top of real, current profits. Amazon is presented as having three engines — e-commerce, digital advertising and AWS — so investors are not relying on AI alone, while Alphabet can fold AI into Search, YouTube and Google Cloud rather than building a new business from scratch.

The counterweight is spending. Amazon's management expects cash capital expenditures of around $220 billion in 2026, and its trailing 12-month free cash flow was negative $42.4 billion. Alphabet's capital expenditures totaled $51.4 billion in the third quarter, with free cash flow turning negative at $9.1 billion. Investors must judge whether these outlays translate into durable revenue and profits.

A final distinction is drawn against Palantir: exciting, but less established. That contrast matters when markets become fearful, because a sell-off could let investors buy either giant at a more attractive price — provided the underlying businesses still look healthy and the valuation leaves room for error.

FAQ

Why prefer Amazon and Alphabet over Palantir?: It says both have large, established businesses that generate substantial profits, while Palantir's investment case is less established, even if it is one of the most exciting AI software companies.
What risks are flagged for Amazon and Alphabet?: Amazon's trailing 12-month free cash flow was negative $42.4 billion, and Alphabet's free cash flow turned negative at $9.1 billion after $51.4 billion in quarterly capex. Investors need to see returns justify the spending.
What should investors check before buying in a crash?: Examine whether the underlying businesses remain healthy, whether AI investment is producing meaningful returns, and whether the valuation offers enough room for error — not just a fallen share price.

Yahoo Finance AIRead Original Article

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