Alibaba emerges as more attractive in comparison to Amazon due to stronger financial performance and valuation

From Nasdaq: 2025-04-08 15:00:00

In the world of global e-commerce, Alibaba Group and Amazon.com continue to dominate, reshaping shopping habits and expanding into new technological frontiers. Amazon leads in Western markets, while Alibaba reigns as the e-commerce powerhouse in China and beyond.

Alibaba’s recent financial results showcase its strength, with revenues increasing by 8% year-over-year and income from operations soaring by 83%. The company’s e-commerce and cloud businesses are thriving, with a focus on AI innovation and international expansion driving growth.

Amazon’s fourth-quarter results reflect its dominance in North American e-commerce, with 10% revenue growth. The company’s Prime membership program and AWS remain key drivers of growth, with a strong focus on AI infrastructure and advertising revenues.

When comparing the two giants, Alibaba emerges with a more attractive valuation and superior recent price performance. With ambitious growth initiatives in AI and cloud computing, Alibaba is positioned for stronger returns compared to Amazon.

Alibaba’s strategic investments in cloud computing and AI, coupled with its strong financial performance, make it a compelling investment choice. With a Zacks Rank #2 (Buy), Alibaba offers greater upside potential in the current market environment compared to Amazon’s Zacks Rank #3 (Hold).

For investors seeking exposure to the global digital transformation, Alibaba Group presents a stronger investment choice at this time. With a more favorable valuation, impressive financial performance, and ambitious growth initiatives, Alibaba stands out as the preferred option over Amazon.



Read more at Nasdaq: Alibaba vs. Amazon: Which E-Commerce Titan is Best Stock Pick?