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MELI vs. JD: Which International E-Commerce Stock Has More Upside?
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Key Takeaways
MELI is currently better positioned than JD to deliver stronger international e-commerce upside in 2025.
MELI's buyer growth and logistics strength contrast with JD's rising costs and weak new segment profitability.
MELI stock surged 53.1% YTD, while JD fell 6.5% amid earnings cuts and cautious sentiment on China's growth.
MercadoLibre (MELI - Free Report) and JD.com (JD - Free Report) are two of the most prominent e-commerce companies operating outside the United States, with MELI leading in Latin America and JD commanding a strong presence in China. Both companies have built strong reputations for logistics, user experience and digital innovation, positioning themselves as more than just online marketplaces.
As global investors look for growth beyond traditional U.S. e-commerce giants, MELI and JD offer contrasting exposure to two very different markets. But which company is better positioned to deliver upside in 2025? Let’s compare their performance and strategies to see which stock stands out now.
The Case for MELI Stock
MercadoLibre is successfully taking advantage of the increasing Internet penetration in Latin America. It is consolidating its position as the destination of choice for online purchasing in the region.
Brand preference scores reached all-time highs in Brazil, Mexico, Argentina and Chile in the first quarter of 2025, contributed by the company’s investments in its value proposition to make the online buying experience more attractive than offline. Unique active buyers grew 25% year over year in the first quarter. This led to impressive year-over-year GMV growth in Brazil, Mexico and Argentina. This reflects the strength of the brand in a stabilizing macro environment.
MercadoLibre’s strategic focus on enhancing the user experience, through features like repeat purchases, better navigation and new ad placements, has been paying off. These efforts have fueled strong growth in its supermarket category, which surged 65% year over year in the first quarter, outpacing all others. More importantly, the category’s expansion is driving higher purchase frequency across general merchandise, supporting MELI’s long-term ambition of increasing overall purchase frequency.
The company’s logistics network is a key growth driver, combining speed with cost-efficiency to boost purchase frequency and shift more retail online. By building flexibility through the offering of both ultra-fast and slower delivery options, MELI can serve a wider range of customer needs. Fulfillment penetration in Brazil topped 60% in March, and rising scale is lowering per-order costs across regions, freeing up resources for strategic investments like free shipping.
The Case for JD Stock
JD.com remains a dominant force in Chinese e-commerce, driven by its robust supply chain, user trust and an expanding general merchandise portfolio. In the first quarter of 2025, general merchandise revenues rose 15% year over year, with strong performance in the supermarket and fashion categories. JD’s commitment to low prices and its growing third-party marketplace have helped strengthen user engagement and order volume.
Over the past several quarters, JD.com has consistently improved user engagement through ongoing investments in customer experience. These efforts, ranging from enhanced after-sales support to broader AI adoption for personalized recommendations, have steadily driven gains in shopping frequency and average revenue per user. The company’s focus on serving lower-tier markets with competitive pricing has also paid off, as growth in these regions continues to outpace higher-tier cities.
However, JD’s new businesses segment, while returning to positive revenue growth (18% year over year), reported an operating loss of RMB 1.3 billion, primarily due to investments in emerging initiatives like food delivery. JD Logistics, while growing revenues by 11%, also posted soft operating income due to investments in fulfillment upgrades.
Overall, JD.com’s retail business continues to show healthy momentum, but its profitability is impacted by ongoing investments in newer verticals, which are still in the scale-up phase.
Price Performance and Stock Valuation of MELI and JD
Performance metrics strengthen Mercadolibre's case. Year to date, shares of MELI have rallied 53.1%, while JD shares have plunged 6.5%. MELI has also outperformed the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry’s growth of 2.4% and 1.4%, respectively, while JD has underperformed both.
MELI’s performance has been fueled by two strong earnings reports in a row, which came out to be better than expected. On the other hand, the relatively shaky Chinese economy and its potential impact on limiting JD’s growth have affected the company’s shares.
MELI Outperforms JD, Sector in YTD
Image Source: Zacks Investment Research
In terms of valuation, MELI’s current forward 12-month P/S ratio of 4.37X is ahead of JD’s 0.28X. Although MELI is trading at a significant premium compared to JD, the premium valuation reflects investor confidence in the company's growth potential for the rest of 2025. In contrast, JD’s current forward 12-month P/S ratio indicates more cautious market sentiment around its near-term performance.
MELI and JD Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for MELI and JD?
The Zacks Consensus Estimate for MELI’s 2025 earnings is pegged at $48.72 per share, which has been revised upward by 5.6% over the past 30 days, indicating a 29.27% increase year over year. The consensus estimate for 2025 revenues is pinned at $27.22 billion, suggesting year-over-year growth of 31.01%.
The Zacks Consensus Estimate for JD’s 2025 earnings is pegged at $3.81 per share, which has been revised downward by 16.9% over the past 30 days, indicating a 10.56% year-over-year decline. The consensus estimate for 2025 revenues is pinned at $179 billion, suggesting a year-over-year increase of 11.35%.
The positive trend in MELI’s earnings estimates reflects investors’ confidence in its growth, while the downward revisions in JD’s earnings estimates reflects skepticism.
Conclusion
While both MercadoLibre and JD.com are leaders in their respective markets, MELI stands out as the more compelling international e-commerce investment. It is benefiting from favorable macro trends, rising Internet penetration and strong execution across its marketplace and logistics. In contrast, JD.com’s growth is constrained by rising investments in unproven areas like food delivery, which are weighing on profitability. With better earnings momentum, stronger stock performance and higher investor confidence reflected in its valuation, MELI offers more upside for 2025.
Currently, MELI has a Zacks Rank #3 (Hold), making the stock a better pick compared with JD, which has a Zacks Rank #4 (Sell).
Image: Bigstock
MELI vs. JD: Which International E-Commerce Stock Has More Upside?
Key Takeaways
MercadoLibre (MELI - Free Report) and JD.com (JD - Free Report) are two of the most prominent e-commerce companies operating outside the United States, with MELI leading in Latin America and JD commanding a strong presence in China. Both companies have built strong reputations for logistics, user experience and digital innovation, positioning themselves as more than just online marketplaces.
As global investors look for growth beyond traditional U.S. e-commerce giants, MELI and JD offer contrasting exposure to two very different markets. But which company is better positioned to deliver upside in 2025? Let’s compare their performance and strategies to see which stock stands out now.
The Case for MELI Stock
MercadoLibre is successfully taking advantage of the increasing Internet penetration in Latin America. It is consolidating its position as the destination of choice for online purchasing in the region.
Brand preference scores reached all-time highs in Brazil, Mexico, Argentina and Chile in the first quarter of 2025, contributed by the company’s investments in its value proposition to make the online buying experience more attractive than offline. Unique active buyers grew 25% year over year in the first quarter. This led to impressive year-over-year GMV growth in Brazil, Mexico and Argentina. This reflects the strength of the brand in a stabilizing macro environment.
MercadoLibre’s strategic focus on enhancing the user experience, through features like repeat purchases, better navigation and new ad placements, has been paying off. These efforts have fueled strong growth in its supermarket category, which surged 65% year over year in the first quarter, outpacing all others. More importantly, the category’s expansion is driving higher purchase frequency across general merchandise, supporting MELI’s long-term ambition of increasing overall purchase frequency.
The company’s logistics network is a key growth driver, combining speed with cost-efficiency to boost purchase frequency and shift more retail online. By building flexibility through the offering of both ultra-fast and slower delivery options, MELI can serve a wider range of customer needs. Fulfillment penetration in Brazil topped 60% in March, and rising scale is lowering per-order costs across regions, freeing up resources for strategic investments like free shipping.
The Case for JD Stock
JD.com remains a dominant force in Chinese e-commerce, driven by its robust supply chain, user trust and an expanding general merchandise portfolio. In the first quarter of 2025, general merchandise revenues rose 15% year over year, with strong performance in the supermarket and fashion categories. JD’s commitment to low prices and its growing third-party marketplace have helped strengthen user engagement and order volume.
Over the past several quarters, JD.com has consistently improved user engagement through ongoing investments in customer experience. These efforts, ranging from enhanced after-sales support to broader AI adoption for personalized recommendations, have steadily driven gains in shopping frequency and average revenue per user. The company’s focus on serving lower-tier markets with competitive pricing has also paid off, as growth in these regions continues to outpace higher-tier cities.
However, JD’s new businesses segment, while returning to positive revenue growth (18% year over year), reported an operating loss of RMB 1.3 billion, primarily due to investments in emerging initiatives like food delivery. JD Logistics, while growing revenues by 11%, also posted soft operating income due to investments in fulfillment upgrades.
Overall, JD.com’s retail business continues to show healthy momentum, but its profitability is impacted by ongoing investments in newer verticals, which are still in the scale-up phase.
Price Performance and Stock Valuation of MELI and JD
Performance metrics strengthen Mercadolibre's case. Year to date, shares of MELI have rallied 53.1%, while JD shares have plunged 6.5%. MELI has also outperformed the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry’s growth of 2.4% and 1.4%, respectively, while JD has underperformed both.
MELI’s performance has been fueled by two strong earnings reports in a row, which came out to be better than expected. On the other hand, the relatively shaky Chinese economy and its potential impact on limiting JD’s growth have affected the company’s shares.
MELI Outperforms JD, Sector in YTD
Image Source: Zacks Investment Research
In terms of valuation, MELI’s current forward 12-month P/S ratio of 4.37X is ahead of JD’s 0.28X. Although MELI is trading at a significant premium compared to JD, the premium valuation reflects investor confidence in the company's growth potential for the rest of 2025. In contrast, JD’s current forward 12-month P/S ratio indicates more cautious market sentiment around its near-term performance.
MELI and JD Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for MELI and JD?
The Zacks Consensus Estimate for MELI’s 2025 earnings is pegged at $48.72 per share, which has been revised upward by 5.6% over the past 30 days, indicating a 29.27% increase year over year. The consensus estimate for 2025 revenues is pinned at $27.22 billion, suggesting year-over-year growth of 31.01%.
MercadoLibre, Inc. Price and Consensus
MercadoLibre, Inc. price-consensus-chart | MercadoLibre, Inc. Quote
The Zacks Consensus Estimate for JD’s 2025 earnings is pegged at $3.81 per share, which has been revised downward by 16.9% over the past 30 days, indicating a 10.56% year-over-year decline. The consensus estimate for 2025 revenues is pinned at $179 billion, suggesting a year-over-year increase of 11.35%.
JD.com, Inc. Price and Consensus
JD.com, Inc. price-consensus-chart | JD.com, Inc. Quote
The positive trend in MELI’s earnings estimates reflects investors’ confidence in its growth, while the downward revisions in JD’s earnings estimates reflects skepticism.
Conclusion
While both MercadoLibre and JD.com are leaders in their respective markets, MELI stands out as the more compelling international e-commerce investment. It is benefiting from favorable macro trends, rising Internet penetration and strong execution across its marketplace and logistics. In contrast, JD.com’s growth is constrained by rising investments in unproven areas like food delivery, which are weighing on profitability. With better earnings momentum, stronger stock performance and higher investor confidence reflected in its valuation, MELI offers more upside for 2025.
Currently, MELI has a Zacks Rank #3 (Hold), making the stock a better pick compared with JD, which has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.