InvestMoat

Amazon vs Microsoft

Microsoft has the wider moat. So why does Amazon win?

Amazon wins, 88 to 81, on growth and valuation.

Microsoft wins on moat, but Amazon's lead on valuation counts for more.

AMZN · Platforms

Amazon.com Inc.

…

Strong BuyFull analysis

MSFT · Software

Microsoft Corp.

…

AccumulateFull analysis

AMZN

MSFT

Composite
88
(higher)
81
Moat
89
90
(higher)
Growth
81
(higher)
79
Valuation
82
(higher)
69

AMZN

MSFT

Bear
$205
$390
Base
$330
$575
Bull
$420
$700
Upside to base
—
—

AMZN

MSFT

Revenue CAGR, 3–5 yr
16–21%
15–17%

AMZN

MSFT

Proprietary Data
Strong
Strong
Regulatory Lock-In
Intact
Intact
Network Effects
Strong
Strong
Transaction Embedding
Strong
Strong
System of Record
Strong
Strong
Scale Economics
Strong
Strong
Brand & Pricing Power
N/A
N/A

AMZN

MSFT

Learned Interfaces
Weakened
Intact (higher)
Business Logic
Weakened
Intact (higher)
Public Data Access
Weakened (higher)
N/A
Talent Scarcity
Weakened (higher)
N/A
Bundling
Strong
Strong

Shaded cells mark the higher score or stronger moat on each row. Valuation and composite use the live price when it is available, the same as each stock page.

Which is the better stock, Amazon or Microsoft?

Amazon wins, 88 to 81, on growth and valuation. Microsoft wins on moat, but Amazon's lead on valuation counts for more. Our rating: Amazon Strong Buy, Microsoft Accumulate.

Does Amazon or Microsoft have the wider moat?

Microsoft scores 90 on moat to Amazon's 89. Microsoft is rated stronger on learned interfaces and business logic.

Which is growing faster, Amazon or Microsoft?

Amazon scores 81 on growth to Microsoft's 79. We expect Amazon to grow 16–21% a year, Microsoft 15–17%.

Is Amazon or Microsoft cheaper right now?

Amazon scores 82 on valuation to Microsoft's 69. In our base case, Amazon has more upside: +35% vs +5%.

Scores in the answers use the price each valuation was last struck at; the table above updates with the live price. Not investment advice.