Alibaba vs. Coupang: Which E-Commerce Giant Is a Better Buy in 2026?
2026-10-15 18:29
•Sara Appino •The Motley Fool
•••••••• ••• Axe Cap view
Alibaba vs. Coupang: A Clearer Path Lies with Alibaba
Alibaba’s stronger profitability and valuation make it a smarter 2026 buy compared to Coupang’s risky growth.
South African investors often look to global tech giants via USD/ZAR as a proxy for growth exposure. Alibaba’s recent struggles with regulation and geopolitical tensions are reflected in its 25% stock drop this year. Still, Alibaba’s 10.1% net margin and 16.9x forward P/E show a more durable business, supported by double-digit growth in AI cloud revenue. That signals a path back to healthy profits. Coupang, on the other hand, is burning cash with a wafer-thin 0.6% net margin. Despite faster top-line growth, regulatory fines and legal troubles cast doubt on its near-term outlook. For rand investors, Alibaba’s cheaper valuation and better earnings cover reduce exposure to volatility amplified by USD/ZAR swings. The risk? Should Coupang resolve its issues and accelerate profitability swiftly, it could outperform, but that looks distant. this is just our opinion and not financial advice
Prefer Alibaba over Coupang on the JSE via USD/ZAR exposure, given a better risk/reward balance; avoid Coupang for now due to regulatory and legal uncertainties.
- USD/ZAR
- BABA
- Worsening China-US geopolitical tensions
- Unexpected Coupang legal resolutions or breakthroughs
6/10
The article compares Alibaba and Coupang as investment opportunities in 2026. Alibaba, despite facing regulatory uncertainty, AI spending pressures, and geopolitical risks, is recommended as the better buy due to its stronger profitability (10.1% net margin), attractive valuation (16.9x forward P/E), and double-digit AI cloud revenue growth. Coupang, while growing faster (14.1% YoY revenue growth), faces record regulatory fines, perjury investigations, and shareholder lawsuits with a thin 0.6% net margin, making it a riskier choice.
Our take is based on reporting first published by The Motley Fool.