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Amazon.com, Inc. (AMZN) reported third-quarter revenues of $180.1 billion, a 13% year-over-year increase, reflecting the strength of its diversified operations in retail, cloud computing, and advertising. In contrast, MercadoLibre, Inc. (MELI) faced challenges in the same period, achieving a 39% revenue growth year-over-year but experiencing margin pressure due to election-related volatility in Argentina.
As of the year-to-date, AMZN shares increased by 1.4%, while MELI shares gained 21.4%. Valuation metrics indicate both companies trade at stretched levels, with MELI at 2.96x forward Price/Sales and AMZN at 3.18x. The Zacks Consensus Estimate for MELI’s fourth-quarter 2025 EPS is $11.85, down 6.03% year-over-year, while AMZN’s estimate of $1.97 signals a 5.9% increase.
While MELI’s growth remains promising, risks from competitive pressures and regional volatility cloud its profitability outlook. Conversely, Amazon’s diversified business model and stable cash flows position it as a stronger long-term investment, leading to a Zacks Rank of #2 (Buy) for Amazon and #4 (Sell) for MercadoLibre.
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