Better Growth Stock to Buy Right Now: Amazon or Alibaba?

Core Viewpoint - The comparison between Alibaba and Amazon highlights their similarities in business models, but significant differences in stock performance and growth prospects exist [1][2]. Current Growth - In 2025, Alibaba's American depositary receipts have increased by nearly 50%, while Amazon's performance is barely positive [3]. - Amazon's net sales grew by 13% year over year in Q2 2025, compared to Alibaba's 7% revenue growth [3][4]. - Amazon's net income rose by 35% year over year, while Alibaba's adjusted earnings increased by 22% [4]. Growth Prospects - Wall Street estimates Amazon's revenue growth at nearly 10% for the next year, while Alibaba's is estimated at 8.3% [5]. - Analysts are more optimistic about Alibaba's earnings growth, projecting a 20% increase in earnings per share (EPS) for Alibaba compared to 14.8% for Amazon [6]. Valuation - Alibaba has a forward price-to-earnings ratio of 14.3, significantly lower than Amazon's 33.4 [8]. - Alibaba's price-to-earnings-to-growth (PEG) ratio is 1.28, compared to Amazon's 2.57, indicating a more favorable valuation for Alibaba [9]. Investment Perspective - For risk-averse investors, Amazon may be the better choice due to less uncertainty regarding government interference [10]. - For aggressive investors, Alibaba presents a more attractive growth opportunity due to its appealing valuation and growth drivers [11].