Amazon (AMZN) and Alibaba Group (BABA) are the leading e-commerce competitors in North America and China, respectively. In Q2 2026, Amazon reported net sales of $200.6 billion, marking a 20% year-over-year increase, with AWS revenue growing 37% to an annualized $169 billion. Conversely, Alibaba’s fiscal Q1 2027 results revealed a 9% revenue increase to RMB269 billion, driven largely by Alibaba Cloud, which saw a 45% surge in external revenue.
Key financial data for Amazon includes operating income rising 43% to $27.5 billion and an advertising revenue boost of 26% to $19.8 billion. For Q3 2026, Amazon expects net sales between $197 billion and $202 billion. In contrast, Alibaba reported a net income drop of 75% year-over-year, alongside a capital expenditure of RMB67.7 billion, leading to a cash flow outflow of RMB44.7 billion. The Zacks Consensus Estimate forecasts Amazon’s 2026 earnings at $13.06 per share (up 82.15% YoY) and Alibaba’s 2027 earnings at $6.87 per share (up 76.61% YoY).
While Amazon’s shares have gained 12.1% year-to-date, Alibaba’s have fallen 18.6%. Analysts suggest Amazon’s premium valuation is justified given its higher-margin AWS growth, diversified revenue streams, and solid operating margins, while Alibaba’s challenges stem from persistent cash flow issues and a transition phase in its business model.
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