BABA
Alibaba Group Holding Limited
BABA's outlook is improving, though it still trails on the overall score.
MELI
MercadoLibre, Inc.
MELI has the edge over BABA overall, supported by stronger valuation and stronger fundamentals.
BABA Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Under pressure | |
| Weak | |
| Healthy |
BABA's balance sheet is currently healthy, and its revenue is stable, but its profitability and cash flow are under pressure.
MELI Fundamentals
| Metric | Status |
|---|---|
| Strong | |
| Stable | |
| Strong | |
| Stable |
MELI's revenue and cash flow are currently strong, and its profitability and balance sheet are stable.
BABA PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 16x | $69.66 | -26% |
| Fair | 20x | $86.59 | -8.2% |
| Current | 21x | $94.36 | — |
| Expensive | 26x | $115 | +22% |
Historical ranges are pointers, not guarantees.
BABA's PE is 21x, but its earnings don't support one, so it isn't a reliable read right now.
MELI PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 33x | $1,475 | — |
| Current | 40x | $1,475 | — |
| Cheap | 50x | $1,874 | +27% |
| Fair | 75x | $2,798 | +90% |
| Expensive | 193x | $7,183 | +387% |
Historical ranges are pointers, not guarantees.
MELI has the edge over BABA in the historical PE scenario, which offers more potential upside but is not a forecast.
BABA Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| Low |
BABA has the edge over MELI on the outlook, with more favorable profitability expectations.
MELI Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Strong growth | |
| Weakening | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for MELI, but weaker profitability.
BABA Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | $4.42 | -52% |
| Q1 2026 | $6.57 | -18% |
| Q4 2025 | $5.79 | -22% |
| Q3 2025 | $7.85 | +49% |
| Q2 2025 | $9.27 | +116% |
| Q1 2025 | $8.06 | +71% |
| Q4 2024 | $7.47 | +24% |
| Q3 2024 | $5.26 | -35% |
BABA's earnings per share have fallen from their peak: $4.42 over the past year, against $9.27 in mid-2025. Its recent earnings include one-off gains.
MELI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $44.82 | +20% |
| Q3 2026 | $37.28 | -9% |
| Q2 2026 | $36.77 | -9.2% |
| Q1 2026 | $37.89 | -6.8% |
| Q4 2025 | $39.40 | +4.5% |
| Q3 2025 | $40.97 | +45% |
| Q2 2025 | $40.48 | +46% |
| Q1 2025 | $40.65 | +82% |
| Q4 2024 | $37.69 | +93% |
MELI has the edge over BABA on earnings, with more consistent year-over-year improvement.
BABA Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $40.2B | +8.3% |
| Q1 2026 | $36.5B | +2.9% |
| Q4 2025 | $42.7B | +1.7% |
| Q3 2025 | $37.2B | +4.8% |
| Q2 2025 | $37.2B | +1.8% |
| Q1 2025 | $35.5B | +6.6% |
| Q4 2024 | $42B | +7.6% |
| Q3 2024 | $35.5B | +5.2% |
BABA's revenue has grown year over year for 16 quarters in a row: $40.2B last quarter, up 8.3% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 7.2% | -6.9 points |
| Q1 2026 | -0.3% | -12 points |
| Q4 2025 | 7.1% | -7.6 points |
| Q3 2025 | 2.2% | -13 points |
| Q2 2025 | 14% | -0.7 points |
| Q1 2025 | 12% | +5.4 points |
| Q4 2024 | 15% | +6.1 points |
| Q3 2024 | 15% | 0 points |
BABA has the edge over MELI on profitability, with a higher operating margin.
MELI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $10.8B | +45% |
| Q2 2026 | $10.2B | +50% |
| Q1 2026 | $8.8B | +49% |
| Q4 2025 | $8.8B | +45% |
| Q3 2025 | $7.4B | +39% |
| Q2 2025 | $6.8B | +34% |
| Q1 2025 | $5.9B | +37% |
| Q4 2024 | $6.1B | +42% |
MELI has the edge over BABA on sales, with stronger typical year-over-year growth.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 6.3% | -3.5 points |
| Q2 2026 | 6.7% | -5.4 points |
| Q1 2026 | 6.9% | -5.9 points |
| Q4 2025 | 10% | -3.4 points |
| Q3 2025 | 9.8% | -0.7 points |
| Q2 2025 | 12% | -2.2 points |
| Q1 2025 | 13% | +0.7 points |
| Q4 2024 | 14% | +7.9 points |
MELI's operating margin was 6.3% last quarter, down 3.5 points from the same quarter a year ago.
BABA Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | -$6.7B | -$4.1B |
| Q1 2026 | -$2.7B | +$1.5B |
| Q4 2025 | $1B | -90% |
| Q3 2025 | -$3.2B | -254% |
| Q2 2025 | -$2.7B | -182% |
| Q1 2025 | -$4.2B | -12231% |
| Q4 2024 | $10.4B | -4.8% |
| Q3 2024 | $2.1B | -62% |
BABA's free cash flow has turned negative after years in the green: −$11.6B over the past year.
MELI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $2.4B | -6% |
| Q2 2026 | $3.2B | +22% |
| Q1 2026 | $1.8B | +138% |
| Q4 2025 | $4.8B | +83% |
| Q3 2025 | $2.6B | +89% |
| Q2 2025 | $2.6B | +55% |
| Q1 2025 | $759M | -44% |
| Q4 2024 | $2.6B | +50% |
MELI has the edge over BABA on cash generation, producing positive trailing cash flow while its opponent burns cash.
BABA Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.5% | +11.1M shares |
| 1 year | +0.9% | +21.4M shares |
| 3 years | -6.2% | -161M shares |
| 5 years | -12% | -339M shares |
| Available history | -8.4% | -221M shares |
BABA has 2.4B diluted shares, up 0.9% from a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | $269.8M |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
| Q3 2024 | — |
BABA spent $270M buying back its own shares over the past year, after none the year before.
MELI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | -195 shares |
| 1 year | 0% | -178 shares |
| 3 years | +1% | +488K shares |
| 5 years | +2.2% | +1.1M shares |
| Available history | +2% | +987K shares |
MELI has the edge over BABA on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q4 2025 | — |
| Q3 2025 | $1M |
| Q4 2024 | — |
| Q3 2024 | — |
| Q2 2024 | $1M |
| Q1 2024 | — |
| Q4 2023 | — |
BABA Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | 0.5x | Very low |
| Q1 2026 | 0.5x | Very low |
| Q4 2025 | 0.6x | Very low |
| Q3 2025 | 0.8x | Very low |
| Q2 2025 | 0.2x | Very low |
| Q1 2025 | 0.3x | Very low |
| Q4 2024 | 0.1x | Very low |
| Q3 2024 | -0.2x | Net Cash |
BABA has the edge over MELI on leverage, with a lower net debt burden relative to earnings.
MELI Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 2.3x | Moderate |
| Q2 2026 | 1.8x | Healthy |
| Q1 2026 | 1.6x | Healthy |
| Q4 2025 | 1.4x | Healthy |
| Q3 2025 | 1.4x | Healthy |
| Q2 2025 | 1.2x | Healthy |
| Q1 2025 | 1.0x | Very low |
| Q4 2024 | 1.0x | Very low |
MELI's net debt is about 2.3 years of its operating earnings (EBITDA), up from 1.4 years a year ago.
BABA Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 38.0 | Neutral |
| Stochastic | 12.7 | Oversold |
BABA's weekly RSI is 38 (neutral) and its Stochastic is 13 (oversold).
MELI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 35.0 | Neutral |
| Stochastic | 6.5 | Oversold |
MELI's weekly RSI is 35 (neutral) and its Stochastic is 6 (oversold).
BABA PE vs Consumer Cyclical Sector
| Metric | BABA | Sector median | Relative |
|---|---|---|---|
| PE | 21x | 18x | 19% above |
| PE % | 60 | 47 | 13 pts above |
BABA has the edge over MELI on valuation relative to its sector.
MELI PE vs Consumer Cyclical Sector
| Metric | MELI | Sector median | Relative |
|---|---|---|---|
| PE | 40x | 18x | 120% above |
| PE % | 0 | 47 | 47 pts below |
MELI is trading at 40x earnings, a 120% premium to the Consumer Cyclical sector's median of 18x.
BABA Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $104.7 | 9.9% below |
| 20 week MA | $111.1 | 15% below |
| 50 week MA | $128.0 | 26% below |
| 100 week MA | $127.7 | 26% below |
| 200 week MA | $106.4 | 11% below |
BABA is in a downtrend: it's below all five of its weekly moving averages, and 11% below its 200-week average.
MELI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $1,699.1 | 13% below |
| 20 week MA | $1,796.0 | 18% below |
| 50 week MA | $1,820.0 | 19% below |
| 100 week MA | $2,010.5 | 27% below |
| 200 week MA | $1,769.5 | 17% below |
MELI is in a downtrend: it's below all five of its weekly moving averages, and 17% below its 200-week average.
BABA Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $215.5 | $222.0 | +3% |
| 2021 | $222.0 | $118.7 | -47% |
| 2022 | $118.7 | $85.7 | -28% |
| 2023 | $85.7 | $77.5 | -9.5% |
| 2024 | $77.5 | $85.1 | +9.7% |
| 2025 | $85.1 | $152.2 | +79% |
| 2026 YTD | $152.2 | $94.4 | -38% |
BABA has finished lower in three of the last six years. It's down 38% so far in 2026.
MELI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $599.2 | $1,690.5 | +182% |
| 2021 | $1,690.5 | $1,262.7 | -25% |
| 2022 | $1,262.7 | $878.3 | -30% |
| 2023 | $878.3 | $1,571.5 | +79% |
| 2024 | $1,571.5 | $1,725.5 | +9.8% |
| 2025 | $1,725.5 | $2,005.7 | +16% |
| 2026 YTD | $2,005.7 | $1,475.1 | -26% |
MELI has the edge over BABA on returns for 2026, with the stronger performance.