Mega-cap stocks are those with a market capitalization of $200 billion or more. Most of these stocks are associated with large, well-established companies with strong track records. Due to their sheer size, mega-cap stocks are often considered safe bets during uncertain macroeconomic times. Using TipRanks’ Stock Comparison Tool, we will compare Alibaba (BABA) and Amazon (AMZN) to see which mega-cap stock has more upside ahead, according to Wall Street analysts.
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Alibaba (NYSE:BABA) Stock
Alibaba is China’s largest e-commerce and cloud-services company, running platforms such as Taobao, Tmall, and AliCloud. The stock has surged more than 45% this year, fueled by AI-driven cloud demand and strong momentum in instant delivery services.
Recently, Alibaba has ramped up efforts in its core e-commerce business. Taobao expanded its one-hour delivery service to 50 cities, hitting over 40 million daily orders during peak campaigns. The company launched a ¥10 billion ($1.4 billion) subsidy plan to compete with JD.com and Meituan in the fast-delivery space. In addition, Alibaba merged its food delivery unit, Ele.me, and travel services, Fliggy, into Taobao and Tmall to strengthen its retail ecosystem.
Looking ahead, the company is set to report its Q1 FY26 earnings soon. Wall Street expects Alibaba to report earnings of $2.16 per share for Q1, down 6% from the year-ago quarter. The decline could be due to the company’s heavy investment in logistics and delivery. Meanwhile, analysts project Q1 revenues at $35.49 billion, up 6% year-over-year.
Is Alibaba Stock a Good Buy Right Now?
Mizuho’s Top analyst, Wei Fang, maintained an Outperform rating but trimmed the price target from $160 to $149, citing concerns about rising competition and lower near-term profitability. According to him, rising competition in China’s local commerce sector, especially in food delivery and instant retail, is beginning to hurt the company’s bottom line.
Overall, Wall Street has a Strong Buy consensus rating on Alibaba stock based on 13 Buys and one Hold. The average Alibaba price target of $150.09 implies about 23.78% upside potential from current levels.
Amazon Stock (NASDAQ:AMZN)
Amazon, the global e-commerce and cloud leader, delivered better-than-expected Q2 2025 earnings. The stock has surged about 5% so far this year, driven by strength in its cloud unit, Amazon Web Services (AWS). The company is making continuous efforts to boost spending on AI infrastructure to drive long-term growth.
At the same time, Amazon is doubling down on its grocery business. It recently expanded its “Amazon Fresh” store rollout in the U.S. and is testing faster same-day grocery delivery to strengthen its retail footprint. This move is designed to increase customer loyalty and complement its Prime ecosystem.
What Is the Price Target for Amazon Stock?
In response to Amazon’s latest grocery push, Morgan Stanley analyst Brian Nowak highlighted that expanding the grocery selection on Amazon.com should help the company cut delivery costs while lowering the minimum basket size. He noted that this move is part of Amazon’s broader effort to capture a larger share of the $1.5 trillion offline grocery market.
Based on 44 Buys and one Hold recommendation, Amazon stock earns a Strong Buy consensus rating on TipRanks. The average AMZN stock price target of $265.22 implies 14.8% upside potential from current levels.
Conclusion
Wall Street remains bullish on both Alibaba and Amazon stocks. However, analysts see greater upside potential in Alibaba. The Chinese giant is betting big on instant commerce and subsidies to defend market share.
Meanwhile, Amazon is expanding its grocery and AI bets to drive long-term growth. While its upside may be smaller than Alibaba’s, Amazon’s stable growth and strong cash flow continue to earn Wall Street’s confidence.