Growth Stock Showdown: Is Amazon or Sea Limited the Better Buy Right Now?

Investors like to compare Amazon (NASDAQ: AMZN) to Sea Limited (NYSE: SE) because each company leads e-commerce in specific regions. Amazon is strongest in North America and much of the developed world, while Sea Limited is the leading e-retailer in the emerging Southeast Asian market.

Nonetheless, a closer look at Sea Limited might challenge the "Amazon of Southeast Asia" moniker, as these companies have little in common when it comes to the non-e-commerce parts of each company. Those differences deepen the question as to which e-commerce conglomerate is the better buy right now.

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Comparing the two companies

First, investors should realize that each company approaches e-commerce differently. Amazon primarily serves more stable, developed world markets that grow more slowly but are significantly wealthier. This stands in contrast to the mainly developing markets in Southeast Asia. As a comparatively poorer region, its consumers are less stable but are growing their wealth at a faster pace.

Nonetheless, neither company generates the majority of profits from e-commerce, and as mentioned before, the businesses significantly diverge outside of e-commerce.

Amazon earns most of its operating income and experiences the fastest sales growth in its market-leading cloud computing platform, Amazon Web Services (AWS). Thus, this high-margin business stands in contrast to the lower margins that come from retailing.

In 2025, Amazon's net sales of $717 billion increased by 12%. Net income came in at $77.7 billion, rising 31% yearly amid rapid AWS growth and slower growth in the company's costs and expenses.

In contrast, Sea Limited deals with a less developed financial system in most of its markets.

It has a significant number of unbanked customers, leading in part to the establishment of its Monee fintech arm to serve such people. Monee provides products that cash-based customers can buy online. It offers digital wallets, payment processing, credit, banking, and insurance. Also, it is typically the fastest-growing segment within Sea Limited.

However, in 2025, its largest earnings before interest, taxes, depreciation, and amortization (EBITDA) profits come from its original business segment, mobile gaming company Garena. Garena is best known for its Free Fire mobile game. Still, the gaming business is always evolving, and following the pandemic, it was Sea's worst-performing segment, forcing investors to be on the lookout for volatility.

In 2025, revenue grew 36% to $22.9 billion. That led to a huge increase in profits as net income rose by 260% to $1.6 billion. Hence, while Sea Limited shareholders deal with considerable volatility, the company has rewarded them with faster income growth.

Amazon or Sea Limited?

Considering that both companies lead their respective markets and reported considerable growth, choosing between the two likely comes down to risk tolerance.

If one seeks stability and minimal risks, Amazon can probably beat the market over the next 10 years despite its developed world focus. However, for those willing to assume risks and volatility that come with developing economies, Sea Limited should ultimately bring faster growth and higher overall returns.

Ultimately, both companies are growing fast enough that they should outperform the S&P 500 over time, so neither is a "bad" choice. Thus, if choosing between Amazon and Sea Limited, investors should evaluate their risk tolerances and choose accordingly.

Will Healy has positions in Sea Limited. The Motley Fool has positions in and recommends Amazon and Sea Limited. The Motley Fool has a disclosure policy.