Amazon Stock vs MELI Stock: Stocks Diverge at $235 and $2,420

Amazon (NASDAQ:AMZN) vs MercadoLibre (NASDAQ:MELI): Global Scale Versus Regional Dominance

Valuation and Market Standing of NASDAQ:AMZN and NASDAQ:MELI

Amazon (NASDAQ:AMZN) trades at $235.53 per share with a market capitalization of $2.51 trillion, positioning it as one of the largest companies globally. Its valuation sits at a trailing P/E of 34.45 and forward P/E of 29.07, justified by double-digit revenue growth and expanding profitability. MercadoLibre (NASDAQ:MELI), by contrast, trades at $2,420.50 per share, with a market cap of $122.7 billion. Despite being smaller in scale, MELI carries a higher trailing P/E of 58.6 and forward P/E of 34.1, reflecting the market’s recognition of its high-growth profile in Latin America. Analysts peg MELI’s average price target at $2,893.88 with a bull case of $3,500, implying nearly 20–45% upside from current levels. Amazon’s consensus targets range from $263 to $306, implying 12–30% upside.

Revenue Power: AWS and Retail Flywheel vs GMV Expansion in Latin America

Amazon reported $670 billion in revenue over the last twelve months, with quarterly revenue growing 13.3% year-over-year. Net income surged to $70.6 billion, supported by AWS growth of 17% YoY and advertising revenue expanding 19%. The company’s operating cash flow reached $121.1 billion, giving it massive liquidity to fund investments in AI infrastructure, Project Kuiper, and global media rights.

MercadoLibre generated $6.8 billion in Q2 2025 revenue, up 34% YoY, translating to annual revenue above $24 billion. Its gross merchandise volume hit $15.3 billion, up 21%, while total payment volume climbed to $64.6 billion, a 39% increase year-over-year. MELI’s net income came in at $523 million for Q2, with trailing twelve-month net income of $2.05 billion and diluted EPS at $40.58. While far smaller in absolute terms, MELI’s growth trajectory—revenues climbing at 33–35% annually—surpasses Amazon’s pace.

Fintech Momentum of NASDAQ:MELI Versus Cloud AI Scale of NASDAQ:AMZN

The heart of MercadoLibre’s growth story lies in Mercado Pago, now serving 67.6 million active users, a 30% YoY increase. The credit portfolio grew 91% year-over-year, with credit cards up 118%. Fintech revenue reached $1.6 billion in Q2, representing 40% growth. With Brazil contributing nearly half of fintech revenue, MELI is building a financial ecosystem that intertwines payments, lending, and e-commerce. Advertising also rose 38% YoY, adding a new monetization lever.

Amazon, meanwhile, is doubling down on AI within AWS. Its Trainium2 chips power models such as Claude 3.5 and Meta’s Llama, while Bedrock has become a hub for enterprise foundation models. Amazon’s stake in Anthropic, now valued at $183 billion, not only boosts investment returns but also deepens cloud demand, with Anthropic expected to spend up to $5 billion on AWS by 2026. This scale gives Amazon a defensible lead in enterprise AI workloads that no Latin American competitor can match.

Profitability and Margins in Comparison

Amazon runs with a 10.5% net margin, well above sector medians, and a 20% EBITDA margin. Return on equity sits at 24.7%, supported by $93 billion in cash on hand. Despite heavy AI infrastructure spending compressing AWS margins temporarily, Amazon’s size and diversification provide stability.

MercadoLibre’s operating income in Q2 was $825 million, up 14% YoY, though margins fell 2.1 points due to higher marketing and shipping incentives. Its net margin of 8.5% trails Amazon but remains impressive given its emerging market exposure. ROE is far stronger at 43.8%, highlighting efficiency in capital allocation. However, MELI faces volatility from Argentina’s peso, where FX losses weighed on Q2 results.

Institutional Backing and Insider Dynamics

Institutional investors hold 66.35% of Amazon, with insiders at 8.44%. Bill Ackman’s Pershing Square added AMZN in 2025, a signal of hedge fund conviction. Insider transactions can be tracked here.

MercadoLibre has even deeper institutional penetration, with 84.8% institutional ownership and insiders holding 7.3%. Short interest is just 1.6% of float, underscoring confidence despite Latin America’s volatility. Insider activity is available here.

Risk Profiles: Tariffs vs Currency Volatility

Amazon’s most pressing risk is exposure to U.S.-China trade tensions. With its retail marketplace relying heavily on Chinese-sourced goods, escalating tariffs could compress margins and reduce demand. Antitrust scrutiny also lingers, particularly around its advertising and retail practices.

MercadoLibre’s risks stem from macro instability in Latin America. Argentina’s ongoing devaluation threatens reported earnings, while non-performing loans above 18.5% for 90+ day delinquencies raise concerns about fintech credit quality. Stock-based compensation jumped 63% YoY to $96 million, diluting free cash flow.

Technical Setups for Both Stocks

Amazon is trading just below its 52-week high of $242.52, with strong support at $224 and deeper support at $213. Momentum is bullish, with shares up 35.9% year-over-year, outpacing the S&P 500. Real-time tracking is available here.

MercadoLibre trades at $2,420.50, near the midpoint of its 52-week range between $1,646 and $2,645. Average daily volume of 342,000 shares ensures liquidity, but volatility remains higher given its beta of 1.49. Investors can track its chart here.

Final Verdict on NASDAQ:AMZN and NASDAQ:MELI

Amazon’s strength lies in its unmatched global scale, diversified growth engines, and fortress balance sheet. With AI, Kuiper, advertising, and healthcare adding new layers, the company justifies a Buy rating despite its valuation premium. MercadoLibre is smaller but growing faster, cementing itself as the indispensable e-commerce and fintech platform of Latin America. With 33% revenue growth, 67.6M fintech users, and a 43.8% ROE, it also earns a Buy rating, albeit with higher risk due to currency and regional exposure.

If you want defensive global dominance with strong AI optionality, Amazon (NASDAQ:AMZN) stands out. For high-growth emerging market exposure with fintech upside, MercadoLibre (NASDAQ:MELI) remains one of the most compelling long-term compounders.

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