Investment Outlook: Amazon vs. MercadoLibre
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Source: Fool
- AWS Profitability: Amazon's cloud computing segment, AWS, accounted for the majority of the company's operating income in 2025, despite representing only 18% of total revenue, highlighting its critical role in profitability and driving investments in artificial intelligence.
- Capital Expenditure Concerns: Amazon plans to allocate $200 billion for capital expenditures in 2025, a significant increase from $132 billion in 2025, which, while potentially enhancing future growth, has raised concerns among investors regarding stock price stability.
- MercadoLibre's Fintech Growth: MercadoLibre's fintech arm, Mercado Pago, has become a key growth driver amid Latin America's shift from cash to fintech; however, the provision for doubtful accounts surged 58% to over $2.1 billion in the first nine months of 2025, dramatically slowing profit growth.
- Market Risks and Opportunities: Despite facing economic and political risks, MercadoLibre's ability to adapt to regional challenges makes it appealing to investors, particularly those willing to take on higher risks, as its smaller size allows for faster growth potential compared to Amazon.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 261.260
Low
175.00
Averages
280.01
High
325.00
Current: 261.260
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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