Investors looking for strong opportunities in the e-commerce sector often compare Amazon (NASDAQ: AMZN) and Coupang (NYSE: CPNG), two major players with dominant positions in their respective markets. While Amazon is the undisputed leader in global e-commerce and cloud computing, Coupang has successfully established itself as South Korea’s premier online retailer with ambitious expansion plans in Asia. Both companies have seen significant growth, but the key question for investors remains: which stock is the better buy right now?
This article provides an in-depth analysis of Amazon and Coupang, examining their financial performance, market strategies, growth prospects, and potential risks. By the end of this piece, investors will have a comprehensive understanding of the strengths and weaknesses of each stock and be better positioned to make an informed investment decision.
Amazon (AMZN): A Global E-Commerce and Cloud Giant
Overview
Founded in 1994 by Jeff Bezos, Amazon has grown into the world’s largest online retailer and a dominant force in cloud computing through its Amazon Web Services (AWS) division. With operations spanning multiple industries, including e-commerce, digital streaming, AI, logistics, and cloud computing, Amazon continues to evolve and capture market share worldwide.
Financial Performance
Amazon’s recent earnings report for the fourth quarter ending December 31, 2024, showcased impressive growth:
- Revenue: $170 billion, up 10% year-over-year (YoY).
- Net Income: $9.9 billion, an 86% YoY increase.
- Earnings per Share (EPS): $1.86, surpassing analyst expectations.
- AWS Revenue: $28.79 billion, growing at 19% YoY but slightly missing forecasts.
Amazon’s cloud computing segment remains one of its biggest profit drivers, contributing significantly to the company’s overall earnings. However, AWS faced supply chain constraints that slowed its growth rate.
Additionally, Amazon’s revenue forecast for Q1 2025 indicates some pressure from foreign exchange rates, but long-term growth prospects remain strong.
Key Growth Drivers
- Cloud Computing Dominance
- AWS continues to lead the global cloud computing market, with a projected revenue increase of 21% due to enterprise workload migration and growing demand for AI-driven solutions.
- Amazon’s AI integration within AWS has fueled innovation in AI applications, creating opportunities for long-term revenue growth.
- E-Commerce Expansion
- Amazon is enhancing its logistics network to ensure faster deliveries.
- AI-powered product recommendations and customer service automation have improved the shopping experience.
- Amazon’s advertising business has become a major revenue stream, further strengthening its financials.
- Artificial Intelligence Investments
- Amazon is aggressively investing in generative AI, competing with tech giants such as Microsoft and Google.
- AI is being integrated across AWS, Alexa, and fulfillment centers, optimizing operations and customer interactions.
Stock Performance & Valuation
As of February 22, 2025:
- Stock Price: $216.58
- 52-Week Range: $127.38 – $220.75
- Market Cap: $1.12 trillion
- P/E Ratio: 37x
Amazon’s stock has surged over 50% in the past year, reflecting strong investor confidence. Analysts believe the company’s long-term AI and cloud strategy could drive further gains, with a potential 23% stock price increase projected over the next year.
Risks & Challenges
- Regulatory Scrutiny: Amazon faces increased antitrust investigations in the U.S. and Europe.
- Cloud Competition: AWS is facing strong competition from Microsoft Azure and Google Cloud.
- Foreign Exchange Headwinds: Global currency fluctuations could impact future earnings.
Coupang (CPNG): South Korea’s E-Commerce Leader with Global Aspirations
Overview
Coupang, often referred to as the “Amazon of South Korea,” has grown into the largest e-commerce player in the country. The company is known for its fast delivery service (Rocket Delivery), extensive product selection, and commitment to customer satisfaction. Unlike Amazon, Coupang operates mainly in Asia, giving it a stronghold in its home market while exploring expansion opportunities in Southeast Asia.
Financial Performance
Coupang’s financial growth trajectory has been remarkable, with analysts forecasting continued expansion in 2024 and beyond:
- Full-Year 2024 Revenue Growth Estimate: 24%
- Projected 2025 Revenue Growth: 15%
- Expected 2025 EPS: $0.50 (a substantial increase from $0.01 in 2024)
Key Growth Drivers
- Market Dominance in South Korea
- Coupang commands over 25% of South Korea’s e-commerce market.
- The company has established extensive logistics infrastructure to ensure next-day and same-day deliveries.
- International Expansion
- Coupang is expanding into Singapore and Taiwan, aiming to replicate its success in South Korea.
- The acquisition of luxury online fashion marketplace Farfetch highlights its diversification strategy.
- Diversification Beyond E-Commerce
- Coupang Eats (Food Delivery): Competes with Uber Eats and local players.
- Coupang Pay (Fintech): Growing its footprint in digital payments.
Stock Performance & Valuation
As of February 22, 2025:
- Stock Price: $24.82
- 52-Week Range: $15.80 – $28.65
- Market Cap: $45 billion
- P/E Ratio: 49x
Although Coupang’s stock price has seen fluctuations, its high-growth potential and expanding international footprint make it an attractive long-term investment. Analysts remain optimistic about its future, with expectations of increased profitability by 2025.
Risks & Challenges
- Profitability Concerns: Coupang is still in the process of achieving sustained profitability, which may deter risk-averse investors.
- Regulatory and Competitive Pressures: Faces competition from local players like Naver and global giants like Amazon in select markets.
- Global Economic Uncertainty: Consumer spending trends and inflationary pressures could impact short-term growth.
Amazon vs. Coupang: Which Stock is the Better Buy?
| Metric | Amazon (AMZN) | Coupang (CPNG) |
|---|---|---|
| Market Cap | $1.12 Trillion | $45 Billion |
| Revenue Growth (2024) | 10% | 24% |
| Projected EPS (2025) | $3.80 | $0.50 |
| Cloud Computing | Market Leader | N/A |
| AI Investments | High | Moderate |
| Global Reach | Worldwide | Primarily Asia |
| Stock Performance (2024) | +50% | +20% |
Both Amazon and Coupang offer compelling investment opportunities, but they cater to different types of investors:
- Amazon: Best suited for long-term investors seeking a diversified tech giant with strong cloud, AI, and e-commerce operations.
- Coupang: Ideal for growth-focused investors willing to take on higher risk in exchange for exposure to the rapidly expanding Asian e-commerce market.
Final Verdict
If you’re looking for stability, global reach, and AI-driven growth, Amazon is the safer bet. However, if you believe in the potential of emerging markets and aggressive expansion, Coupang could offer higher upside potential in the coming years.
