Amazon vs Mercadolibre: a Stock Duel
Head-to-head: which stock has stronger fundamentals
Ladies and gentlemen, the moment has arrived for our 6th stock duel: Amazon vs Mercadolibre. Let’s break down the numbers, compare the key metrics, and see which stock comes out on top. Ready to pick your winner? Let’s dive in!
If you enjoy stock duels, don’t miss the 3 first ones!
Share your thoughts on both companies in the comments below!
Metrics and markets
Amazon (ticker: AMZN) is one of the most iconic companies worldwide and is likely to be the first to reach $1T in annual revenue. With almost $700B in yearly sales, its scale is unmatched. Mercadolibre (ticker: MELI), though also well-known, plays in a different league with about $27B in annual revenue.
However, size is nit everything. While Amazon dominates globally, Mercadolibre benefits from operating in a fast-growing market (South American e-commerce) where penetration remains low, offering significant growth potential. This is evident in its projected growth of over 30% for 2025.
Both companies have diversified beyond their core businesses: Amazon is renowned for AWS and its ventures into digital media, among others, while Mercadolibre combines e-commerce with financial services, two areas that reinforce each other.
So, which stock is the better buy? Both look like attractive bets. Mercadolibre may appeal more to investors seeking dynamic growth and exposure to emerging markets, whereas Amazon fits those looking for a blue-chip giant with strong market leadership. One word of caution: valuations are not particularly cheap for either, so careful consideration is needed.
If you want to dig deeper, here are 2 detailed analyses of each company.
Technical analysis
Used source: Marketscreener.com. Affiliate link just here
Amazon
As valuations adjusted, the stock delivered modest returns since 2020, up only 35% over 5 years, despite a 5x increase in EPS. This valuation reset was expected and understandable. More recently, the stock has rebounded, finding support in the $160–$170 range.
Buy zone 1: $166
Buy zone 2: $145
Buy zone 3: $106
For more aggressive buyers, $190 could be an interesting buy zone too.
Mercadolibre
The trend is very positive. Here are my 3 buy zones:
Buy zone 1: $2,000 - $2,100
Buy zone 2: $1,700
Buy zone 3: $1,350 - $1,400
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