#9 Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. looks cheap to many because its cloud business is speeding up and the stock has pulled back. Analysts expect revenue to grow about 16% in 2026 and about 15% in 2027, and AWS is the main driver as companies move more spending to the cloud.
The stock trades at 31.6 times forward earnings, which is about 80% below its own five-year average. Bulls say heavy AI investment will pay off as AWS grows and the stock catches up. The main risk is that spending. Capital spending has pushed trailing free cash flow negative, and the stock still trades at about twice the sector’s forward multiple. Amazon is down about 4.6% today in the AI selloff.
Two well-known investors like the stock going into earnings. See the full earnings setup here.
#8 Alphabet Inc. (NASDAQ:GOOGL)
Alphabet Inc. gets called a classic tech bargain because it grows as fast as the other mega-cap tech stocks and costs much less. Revenue is expected to rise about 24% in 2026 and about 25% in 2027, and Google Cloud is the fastest-growing cloud business among the big players. The stock trades at about 16 times forward earnings on a GAAP basis, which is roughly 30% below its own five-year average and the cheapest multiple in the Magnificent Seven.
Bulls say the market prices Alphabet like a mature company and ignores how much AI adds to its cloud and search businesses. The risk is spending. Alphabet raised its 2026 AI spending outlook, and cloud growth could slow before that spending pays off. Analysts also expect earnings to stay about flat in 2027 after growing about 45% in 2026, and the forward PEG ratio of 1.63 is above the sector’s 1.25. Alphabet is down about 3% today. Claude’s AI portfolio picked Alphabet as its best performer this year. Find out what drove the gain here.
#7 Meta Platforms, Inc. (NASDAQ:META)
Meta Platforms, Inc. looks cheap to bulls because its revenue is growing fast while the stock trades at a multiple close to its own five-year average. Analysts expect revenue to rise about 28% in 2026 and about 21% in 2027, and earnings per share to rise about 16% in 2027 after a nearly flat 2026. The forward PEG ratio is 1.18, which is 22% below its five-year average and a little below the sector’s 1.25.
Bulls say the market focuses on the company’s AI spending and gives it little credit for the earnings that spending could produce. Bill Ackman’s Pershing Square opened a new stake in the stock and sees Meta’s valuation as lower than Alphabet’s, Apple’s and Nvidia’s. Read what Ackman’s fund saw in the stock here. The risks are spending and regulators. Heavy AI computing costs could weigh on margins, and European rules could hit them too. Meta fell about 7% today after its third-quarter results, which came in below estimates. Meta’s AI spending keeps climbing, and some big names still back the stock. Read why they stay bullish here.
