MercadoLibre vs. Amazon: Which E-Commerce Stock Has More Upside?

Zacks compares MercadoLibre and Amazon and concludes Amazon likely has more near-term upside due to scale, improving margins and more diversified revenue streams. Amazon’s AI-driven advertising and logistics gains have driven expanding North America margins and an 8.2% YTD share gain; however, heavy capital expenditure ($200 billion planned for 2026) will pressure free cash flow. MercadoLibre shows faster top-line growth in Latin America—GMV +35% and items sold +45% in Q4 2025—and strong ad and fintech momentum (advertising +67%, Mercado Pago credit portfolio $12.5B), but accepts margin compression to build logistics and credit scale amid macro and currency risks. On forward metrics Amazon trades at a premium (3.22x P/S vs. MELI 2.23x). Both stocks carry a Zacks Rank #3 (Hold), but Zacks views Amazon as offering relatively greater upside given its diversification and more stable earnings outlook.