spy vs observe

spy is a noun but observe is not a noun.

spy and observe both are verbs.

Word	Noun	Adjective	Verb	Adverb
spy	Yes	No	Yes	No
observe	No	No	Yes	No

As verbs, observe is a hyponym of spy; that is, observe is a word with a more specific, narrower meaning than spy:

spy: catch sight of; to perceive with the eyes
observe: discover or determine the existence, presence, or fact of by perception with the eyes

Other hyponyms of spy include descry, espy, spot, spy, detect, discover, find, notice.

spy (noun)	observe (noun)
(military) a secret agent hired by a state to obtain information about its enemies or by a business to obtain industrial secrets from competitors
a secret watcher; someone who secretly watches other people

spy (verb)	observe (verb)
secretly collect sensitive or classified information; engage in espionage	stick to correctly or closely
watch, observe, or inquire secretly	make mention of
catch sight of	watch attentively
catch sight of; to perceive with the eyes	observe with care or pay close attention to
	discover or determine the existence, presence, or fact of by perception with the eyes
	follow with the eyes or the mind
	show respect towards
	behave as expected during of holidays or rites
	conform one's action or practice to

Difference between spy and observe

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