Amazon vs MercadoLibre: Two E-Commerce Titans, Only One is The Smarter Buy Now

This article compares Amazon and MercadoLibre after both reported Q2 2026 results, arguing that Amazon is the sturdier long-term compounder while MercadoLibre offers more asymmetric upside if execution improves. Amazon posted $200.6 billion in revenue, with AWS growing at its fastest pace in 18 quarters, advertising up 26%, and AI/chips already at a $25 billion run rate. However, Amazon is also spending heavily, lifting 2026 capex guidance to about $220 billion and still facing capacity constraints. MercadoLibre grew revenue nearly 50% to $10.17 billion, but operating income fell and margins compressed sharply as it prioritized growth in Latin America, fintech, and credit expansion. The piece favors Amazon today due to stronger profitability and cash-generation visibility, while noting MercadoLibre’s 20% one-year stock decline may create a better turnaround/setup if margins stabilize. Overall sentiment is mildly bullish on AMZN and mixed on MELI.