At the intersection of consumer goods and technology, Amazon(NASDAQ: AMZN) stands out as the global leader in e-commerce and cloud computing. The company's long history of innovation and fantastic growth has rewarded shareholders handsomely, with the stock more than doubling in value in just the past five years.
Halfway around the world, Coupang(NYSE: CPNG) is attempting to replicate some of Amazon's success, emerging as a formidable competitor and one of Asia's largest online retailers. Despite a volatile period following the company's 2021 IPO, the stock has quietly gained momentum in early 2025 and is now up 70% over the past year.
There's a lot to like about both Amazon and Coupang as potential investments, but which stock is the best buy right now? Here's what you need to know to make a more informed decision.
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The case for Amazon
It's no coincidence that shares of Amazon have climbed 33% over the past year. By all accounts, the company is firing on all cylinders. Its fourth-quarter earnings report (for the period ended Dec. 31, 2024) showed net sales up 10% year over year, while the $1.86 in earnings per share (EPS) increased by 86%.
The resilient macroeconomic environment is a big part of the story, supporting steady global consumer spending. The company's steps to improve operational efficiencies have driven sharply higher margins. Perhaps even more important is Amazon's leadership in artificial intelligence (AI) with critical cloud infrastructure solutions, along with an extensive suite of AI and machine learning services in high demand.
What makes Amazon a great stock is precisely that diversification, capturing themes in both consumer spending and technology. According to Wall Street analysts tracked by Yahoo! Finance, 2025 should be another solid year, with an estimated 10% revenue growth and 15% higher EPS.
Investors looking for an established giant with robust fundamentals can make the case that Amazon is the best stock to buy now.
The case for Coupang
Coupang is smaller than Amazon, but it's still a massive business, generating more than $30 billion in revenue in the past year.
The company is technically headquartered in the United States but operates primarily in South Korea as the country's dominant e-commerce player, offering everything from groceries and home goods to electronics through its online marketplace. Coupang's commanding market share in the country has effectively kept Amazon from gaining a major presence, highlighting its competitive advantage in the region stemming from a unique understanding of the local customer.
Coupang has made an effort to expand in Asia, establishing logistics hubs in Singapore and Taiwan that represent a key growth opportunity. In 2024, Coupang acquired the luxury fashion online marketplace Farfetch, signifying an ongoing diversification with broader international ambitions. Coupang has also gained traction through its developing offerings covering services such as Coupang Eats, a food delivery app, and Coupang Pay, a financial technology (fintech) platform.
The strategy appears to be paying off. Pending the fourth-quarter earnings report (for the period ended Dec. 31, 2024), set to be released on Feb. 25, Wall Street analysts are forecasting full-year 2024 revenue growth of 24%. The tailwind is expected to continue with a top-line growth estimate of 15% in 2025. Even more impressive is the trend in net income, with Coupang projected to reach EPS of $0.50 in 2025, accelerating from a $0.01 estimate for 2024.
The stock trades at a forward price-to-earnings (P/E) ratio of 51, which is a premium next to Amazon, with its forward earnings multiple of 35. Nevertheless, that valuation spread could be justified given the company's stronger earnings momentum. Confidence that Coupang is still in the early stages of a significant opportunity in its emerging markets is a good reason to buy the stock.
It's tough to choose between Amazon and Coupang, as both are compelling stocks that are well-positioned to deliver positive shareholder returns going forward. If forced to pick just one, I believe Coupang may have an edge in 2025, as it reaches an inflection point in profitability. That would provide a great backdrop to propel shares higher and outperform Amazon to the upside.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.
