What did JPMorgan do with Alphabet's rating?

JPMorgan kept Alphabet at 'Overweight' but warned that AI search monetization could take time and that rising compute costs are pressuring cash flow.

How fast is AWS growing, according to JPMorgan?

Amazon's third-quarter AWS revenue jumped 39% year-over-year to $46 billion, its fastest growth in nearly five years, and JPMorgan expects growth to exceed 40% in both 2027 and 2028.

AI Stocks & MarketsTop Companies' AI MovesAI Business & IndustryTop Companies AI11m agoNov 10, 2026, 06:30 JST

JPMorgan Picks Meta, Amazon; Sees Meta Ads Topping Google Search

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3 Key Points

What happened
JPMorgan added Meta to its Analyst Focus List, replacing Alphabet, and forecast Meta's Family of Apps ad revenue will surpass Google Search from the fourth quarter, as Meta and Amazon shares each rose more than 5%.
Why it matters
The call signals that JPMorgan expects Meta's advertising momentum to keep building, enough to overtake Google's core search business in ad revenue.

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Context & Analysis

The moves come after Meta's fiscal third-quarter advertising revenue rose 26% year over year to $63.1 billion, with North American ad growth accelerating to 33%. JPMorgan tied that gain to AI-driven improvements in ad retrieval, ranking and targeting. Meta also reported a 10% increase in ad impressions and a 14% rise in average price per advertisement during the quarter. On the Amazon side, third-quarter AWS operating income climbed to $17.8 billion from $11.4 billion a year earlier, which JPMorgan read as improving profitability alongside expanding cloud demand. The note also pointed to emerging monetization from Meta's Muse AI assistant, which has attracted 10 million sign-ups in the U.S. and Canada, plus enterprise products such as Meta Model API and Muse Code. For Alphabet, JPMorgan's caution on AI search monetization and compute costs contrasts with its more upbeat view on the two chosen names.

FAQ

What did JPMorgan do with Alphabet's rating?: JPMorgan kept Alphabet at 'Overweight' but warned that AI search monetization could take time and that rising compute costs are pressuring cash flow.
How fast is AWS growing, according to JPMorgan?: Amazon's third-quarter AWS revenue jumped 39% year-over-year to $46 billion, its fastest growth in nearly five years, and JPMorgan expects growth to exceed 40% in both 2027 and 2028.

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