Amazon vs. Alibaba: Which Growth Stock Will Dominate in 2025?

Two tech titans clash—but only one can reign supreme. Amazon’s relentless logistics machine faces off against Alibaba’s e-commerce stronghold in Asia. Who’s got the edge?

Cloud Wars: AWS vs. Aliyun

While Amazon Web Services prints money, Alibaba’s cloud arm is growing faster—just don’t mention Beijing’s regulatory crackdowns.

The Global Gambit

Amazon’s international expansion hits roadblocks, while Alibaba quietly gobbles up Southeast Asian market share. But can either dodge inflation’s gut punch?

Valuation Verdict

Alibaba trades at a laughable discount—if you trust the CCP’s math. Meanwhile, Amazon’s P/E ratio assumes Bezos will personally colonize Mars.

Bottom line: Both stocks could moon—or get crushed by regulators, supply chains, or Elon’s next tweet. Choose your poison.

Current growth

While Amazon's stock performance has trounced Alibaba's over the long term, it's a different story more recently. So far in 2025, Alibaba's American depositary receipts have soared close to 50% while Amazon is barely in positive territory.

However, Amazon is growing faster than Alibaba in at least one way. In the second quarter of 2025, Amazon's net sales jumped 13% year over year. Alibaba's revenue in its latest reported quarter increased by 7% year over year.

It was a similar story on the two companies' bottom lines. Amazon's net income soared 35% year over year, while Alibaba's adjusted earnings grew by 22%. Granted, Alibaba's earnings based on generally accepted accounting principles (GAAP) skyrocketed by 13 times. However, this increase was primarily due to mark-to-market changes from its equity investments.

Growth prospects

The more important question is how much Amazon and Alibaba will continue to grow in the future. What is Wall Street's take? The consensus revenue growth estimate for Amazon next year is nearly 10%, compared to 8.3% for Alibaba, according to.

But analysts are more optimistic about Alibaba's earnings growth. The average estimate of the 29 analysts surveyed by LSEG is for the Chinese company to increase its earnings per share by roughly 20% next year. The average estimate of the 61 analysts surveyed by LSEG that cover Amazon is for the e-commerce and cloud services giant to grow its EPS by around 14.8%.

Looking beyond one year is more difficult. Both Amazon and Alibaba should have strong AI tailwinds that help their cloud businesses. However, both companies also face intense competition from rivals with DEEP pockets. Probably the biggest wild card is how the Chinese government's actions might impact Alibaba's growth.

Image source: Getty Images.

Valuation

There's not much of a contest between these two growth stocks when it comes to valuation. Alibaba wins hands down.

Amazon's shares trade at a lofty forward price-to-earnings ratio of 33.4. Alibaba's forward earnings multiple is only 14.3. The Chinese tech giant also looks more attractive than Amazon in valuation metrics based on sales and book value.

What if growth is factored into the equation? Alibaba still comes out on top. Its price-to-earnings-to-growth (PEG) ratio based on analysts' five-year earnings growth projections is 1.28, versus 2.57 for Amazon.

Better growth stock?

Which is the better growth stock -- Amazon or Alibaba? I have a nuanced answer.

If you're a more risk-averse investor, Amazon is probably the better pick. The company doesn't face the uncertainty related to potential Chinese government interference that Alibaba does.

On the other hand, if your investing style is more aggressive, I think Alibaba is the better growth stock for you. Its growth drivers are similar to Amazon's, but its valuation is much more appealing. I like Amazon's prospects, but I suspect Alibaba has even more room to run over the next decade.