The easing of tariff tensions following favorable trade agreements, mainly that between the U.S. and China, has helped revive investor sentiment and mitigate concerns about a potential recession. Given this scenario, we used TipRanks’ Stock Comparison Tool to place Chewy (CHWY), Alibaba (BABA), and Amazon (AMZN) against each other to pick the most attractive e-commerce stock, according to Wall Street analysts.
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Chewy (NYSE:CHWY)
Pet products and services retailer Chewy’s stock has rallied about 25% year-to-date, reflecting the company’s strong performance despite macro uncertainties and intense competition. Growth in CHWY’s active customers, rising adoption of its Autoship offering, and a focus on high-margin services have been fueling the company’s growth. Notably, Autoship customer sales increased by 10.6% to $9.39 billion in Fiscal 2024 and accounted for 79.2% of Chewy’s overall sales.
Chewy is scheduled to announce its results for the first quarter of Fiscal 2025 on June 11. The company’s Q1 FY25 earnings per share (EPS) is expected to grow more than 13% to $0.17.
Is Chewy Stock a Buy or Sell?
Chewy recently announced that its CFO David Reeder will soon leave the company to return to the semiconductor industry as CEO of Entegris (ENTG). Reacting to the news, William Blair analyst Dylan Carden reaffirmed a Buy rating on CHWY stock. The 5-star analyst stated that Reeder is leaving Chewy for an arguably higher-visibility role in an industry that he is more familiar with. Consequently, Carden said that he is not reading much into the CFO’s relatively early departure.
Carden noted that Chewy reiterated its first-quarter guidance, reinforcing that its long-term strategy remains on track and its business momentum continues to be strong. The analyst believes that Chewy is well-positioned following an inflection in active customers over the last two quarters, which he expects to continue through the year as the business has not historically been overly seasonal (with more than 80% of sales on Autoship). He sees notable upside to active customers and revenues as the year progresses.
Overall, Carden believes that CHWY stock’s valuation remains attractive, as he sees upside in cash flow in the ongoing and next year. However, he cautioned that potential inflation from tariffs could present a major risk.
Wall Street has a Strong Buy consensus rating on Chewy stock based on 19 Buys and five Holds. The average CHWY stock price target of $40.37 indicates a downside risk of 3.3%.
Alibaba (NYSE:BABA)
Chinese e-commerce and cloud computing company Alibaba recently reported its results for the fourth quarter of Fiscal 2025, which missed analysts’ expectations. The company has been facing persistent weakness in the Chinese economy, the U.S.-China trade dispute, and intense competition from players like PDD Holdings (PDD) and JD.com (JD).
Nonetheless, revenue in the Taobao and Tmall group (TTG) increased 9% in the March quarter, accelerating from the growth rate seen in the previous quarter. Moreover, customer management revenue (CMR), which includes revenue that Alibaba earns by selling marketing and other services to merchants on its platform, grew by an impressive 12%. Meanwhile, the 18% growth in Alibaba’s cloud revenue was also faster than the growth in the previous quarter. While the company didn’t specify its AI revenue, it said that AI-related product revenue saw triple-digit growth for the seventh consecutive quarter.
Is BABA a Good Stock to Buy Now?
In reaction to the results, Benchmark analyst Fawne Jiang lowered the price target for Alibaba stock to $176 from $190 to reflect his revised FY26 estimates, but retained a Buy rating. The 5-star analyst noted that BABA missed Q4 FY25 revenue expectations due to the softer performance of Alibaba International Digital Commerce (AIDC) business and “outdated” consensus estimates that didn’t consider recent asset divestitures. Jiang highlighted that, ignoring the noise, Alibaba’s core commerce and Cloud business showed strong acceleration.
In fact, CMR increased 12%, well ahead of the Street’s expectations, fueled by improved take rates. Further, cloud revenue accelerated to high teens, driven by solid demand for the company’s AI services. Looking ahead, Jiang raised his revenue estimates for CMR and TTG but trimmed overall revenue estimates due to AIDC resets and potential ele.me headwinds. While the analyst lowered his FY26 profitability estimate to reflect the potential increase in instant commerce investments, he noted strengthening fundamentals in Alibaba’s core segments (TTG and Cloud).
Overall, Wall Street has a Strong Buy consensus rating on Alibaba stock based on 16 unanimous Buys. The average BABA stock price target of $165.13 implies about 34% upside potential from current levels. BABA stock has rallied about 46% so far in 2025.
Amazon (NASDAQ:AMZN)
E-commerce and cloud computing giant Amazon recently reported better-than-expected revenue and earnings for the first quarter of 2025. However, the company issued soft guidance for Q2 2025 due to steep tariffs.
The easing of tariff tensions between the U.S. and China bodes well for Amazon. Also, while the company’s Amazon Web Services (AWS) cloud business missed expectations, several analysts expect it to continue to gain from AI tailwinds. Amazon’s rapidly growing ad business is also expected to boost its prospects.
What Is the Price Target for Amazon Stock?
Following Amazon’s annual Upfront advertising event, Citi analyst Ronald Josey reiterated a Buy rating on AMZN stock with a price target of $225. Among the key takeaways, the 5-star analyst noted that the company’s reach has increased to 300 million ad-supported viewers compared to 275 million in May 2024, with Prime Video’s ad-supported monthly audience reaching 130 million, up from 115 million in May 2024.
Josey noted growing engagement, with monthly viewing hours increasing 37% year-over-year. He also mentioned the benefits of live sports on engagement and ads and a “full-funnel focus,” with 88% of Prime Video viewers shopping on AMZN. The analyst expects Amazon’s ad revenue to increase by 18% to $66 billion in 2025. With tariffs on Chinese goods reduced to about 30% from 145% and some relief on de minimis, Josey is incrementally positive on Amazon’s Retail business, back-to-school prospects, and operating income.
With 47 Buys and one Hold recommendation, Amazon stock scores Wall Street’s Strong Buy consensus rating on TipRanks. The average AMZN stock price target of $240.37 implies about 17% upside potential. AMZN stock is down 6% year-to-date.
Conclusion
Wall Street is bullish on all three e-commerce stocks discussed above. Despite macro challenges in China and ongoing trade wars, analysts currently see higher upside potential in Alibaba stock than in the other two e-commerce stocks. They are confident about growth in Alibaba’s core businesses and AI tailwinds.