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

• Amazon's astir caller 4th showed double-digit maturation successful retail, ads, and cloud.

• Both Amazon and Alibaba person seen a reacceleration successful their unreality businesses.

• Amazon's wide concern is increasing overmuch faster than Alibaba's.

• 10 stocks we similar amended than Amazon ›

Both Amazon (NASDAQ: AMZN) and Alibaba Group (NYSE: BABA) are utilizing AI (artificial intelligence) to amended their products and merchantability much services. And some of the e-commerce giants person monolithic online buying platforms that interaction millions of consumers and businesses each day. But which of these 2 companies makes for a amended maturation banal to bargain close now?

The reply volition boil down to a fewer things, including the companies' momentum today, the durability of their underlying businesses, and their stocks' valuations.

Amazon's third-quarter 2025 results amusement some a diversified and fast-growing business. Its full income roseate 13% twelvemonth implicit year.

This maturation was fueled by a scope of businesses. Amazon's online stores gross roseate 10% twelvemonth implicit twelvemonth successful the quarter. Third-party seller services revenue, which includes fees Amazon collects erstwhile different merchants merchantability connected its site, accrued 12%. And adjacent subscription services revenue, which includes Prime memberships, roseate 11%.

Then there's advertizing -- 1 of Amazon's astir important newer maturation engines. Advertising services gross accrued 24% twelvemonth implicit twelvemonth successful the 3rd quarter.

But the biggest communicative for maturation investors is inactive Amazon Web Services, oregon AWS. AWS is Amazon's unreality computing business. AWS gross roseate 20% twelvemonth implicit twelvemonth successful the 3rd quarter. In the company's net release, Amazon CEO Andy Jassy pointed straight to beardown AI-related demand, stating that AWS is increasing astatine a gait the institution hasn't seen since 2022.

There is simply a outgo to this, nevertheless -- and investors should beryllium alert of it. Amazon is spending aggressively to grow information halfway capacity. The institution said trailing-12-month escaped currency travel fell from $47.7 cardinal successful the year-ago play to $14.8 cardinal -- driven chiefly by soaring superior expenditures related to infrastructure to enactment further accelerated maturation successful cloud.

Alibaba's gross successful its astir caller 4th showed progress, but maturation wasn't arsenic robust oregon broad-based crossed its concern arsenic it has been for Amazon's. Revenue during the play accrued 5% twelvemonth implicit twelvemonth -- meaningfully slower than Amazon.

To beryllium fair, determination are agleam spots. Alibaba's Cloud Intelligence Group gross accrued 34% twelvemonth implicit twelvemonth successful the September 4th -- a crisp acceleration implicit 26% maturation successful the play ended 3 months earlier. Management tied this to "Robust AI demand," and CEO Eddie Wu said AI-related merchandise gross delivered "triple-digit year-over-year maturation for the ninth consecutive quarter."