Amazon vs MercadoLibre: Amazon the Safer Buy
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- Amazon is off 16% from its high and MercadoLibre trades 34% below its peak, putting both stocks in buy-the-dip territory.
- Amazon's 2025 results showed net sales rising 12% year-over-year and net income surging 31%, paired with a 30 P/E ratio the source calls unusually low for the company.
- Amazon committed $200 billion in capital expenditures this year, up from $131 billion in 2025, while holding $123 billion in liquidity to back the spending.
- MercadoLibre posted 44% revenue growth in 2025 but profit growth of under 5%, as rising e-commerce competition squeezed margins and the provision for doubtful accounts spiked on aggressive lending through its Mercado Pago fintech arm.
- MercadoLibre's $87 billion market cap — a fraction of Amazon's $2.3 trillion — and its history of building Latin America-specific solutions like Mercado Envios give it higher percentage growth potential at a 44 P/E ratio.
- The analysis lands on Amazon as the better pick for risk-averse investors, citing its proven business model, scale, and recession-resistant e-commerce breadth, while MercadoLibre suits investors prioritizing faster growth over stability.
Why it matters: For investors sizing up the two, Amazon's 30 P/E ratio and $2.3 trillion scale face competition from MercadoLibre's 44% revenue growth and 44 P/E — but the latter's sub-5% profit growth and surging fintech credit losses reveal the hidden cost of its aggressive Latin America expansion, tipping the risk-adjusted choice to Amazon.
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