{
  "id": 17862423,
  "title": "Amazon vs. Alibaba: Two E-Commerce Giants, a Big Valuation Gap, but Which Offers More Upside in 2027?",
  "url": "https://urgent.news/2026/11/02/amazon-vs-alibaba-two-e-commerce-giants-a-big-valuation-gap-but-which",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-02T21:30:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/coverage/better-buy/2026/11/02/amazon-vs-alibaba-two-e-commerce-giants-a-big-valuation-gap-but-which-offers-more-upside-in-2027/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Amazon (AMZN) and Alibaba (BABA) are two of the world's dominant e-commerce and cloud computing companies, each operating in different markets and offering unique growth prospects. Amazon's core business includes online retail, third-party seller services, advertising, cloud infrastructure, and Prime subscriptions. In fiscal year 2025, Amazon reported revenue of $716.9 billion, a 12.4% increase year-over-year, and net income of $77.7 billion, resulting in a profit margin of 10.8%. The company's Amazon Web Services (AWS) segment reported a 20% increase in annual sales, driven by the growing demand for cloud computing and artificial intelligence (AI) infrastructure.\n\nAlibaba, on the other hand, operates one of China's largest e-commerce platforms and cloud computing services. In fiscal year 2026, Alibaba generated $148.4 billion in revenue, a 2.7% increase year-over-year, with net income down 19% from the previous year. The company's debt-to-equity ratio is approximately 0.25x, while its current ratio stands at 1.3x. Alibaba's free cash flow was negative at $6.8 billion for fiscal year 2026, compared to positive $10.7 billion the previous year, due to substantial investments in AI and cloud computing infrastructure.\n\nValuation-wise, Alibaba appears cheaper than Amazon, with a Forward P/E ratio of 14.8 and a P/S ratio of 1.6, compared to Amazon's Forward P/E of 18.7 and P/S ratio of 3.3. However, Amazon demonstrates stronger revenue growth, with a 12.4% increase in 2025, compared to Alibaba's 2.7%. Amazon's diversified business model and substantial investments in AI and cloud computing infrastructure provide confidence in its long-term growth potential. Despite intense global competition, regulatory scrutiny, and operational risks, Amazon's stronger financial performance and growth momentum make it the more compelling investment choice for the upcoming year.",
  "summary": "Amazon and Alibaba are investing heavily in the future of e-commerce and artificial intelligence, but a substantial valuation gap could make one the more attractive opportunity heading into 2027.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}