Key Points
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Amazon’s stock instability stems from $200 billion in planned capital expenditures, primarily focused on artificial intelligence, following $132 billion spent in 2025.
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MercadoLibre’s profit growth has slowed due to a 58% increase in provisions for non-performing loans, reaching over $2.1 billion in the first nine months of 2025.
Amazon (NASDAQ: AMZN) is experiencing stock volatility linked to its significant investments in artificial intelligence (AI) and cloud computing through AWS, which generates the majority of its operating income but represents only 18% of total revenue. MercadoLibre (NASDAQ: MELI) has seen profit challenges primarily in its fintech division, Mercado Pago, as it adapts to increased bad loan expenses amid economic shifts in Latin America.
Despite their current struggles, Amazon reported $11 billion in free cash flow for 2025 and has $123 billion in liquidity, while MercadoLibre’s revenue surged 37% in the first nine months of 2025, outpacing Amazon’s 12% growth. Investors are weighing the lower risk of Amazon against MercadoLibre’s potential for higher growth given its smaller size and adaptation strategies.
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