MercadoLibre is the preferred consumer stock over Etsy for 2026, according to a Motley Fool analysis. Etsy reported fiscal 2025 revenue of nearly $2.9 billion, a modest 2.7% increase, with net income of approximately $163 million, down from $303.3 million in 2024, while divesting secondary platforms like Depop to refocus on its core marketplace. MercadoLibre's fiscal 2025 revenue reached approximately $28.9 billion, a 39.1% jump, with net income of about $2 billion and free cash flow of nearly $10.8 billion, driven by its integrated e-commerce, fintech, and advertising ecosystem across 18 Latin American countries. Despite MercadoLibre trading at a forward price-to-earnings ratio of 43 times compared to Etsy's 21.9 times, its 49% quarterly sales growth and expanding moat in underpenetrated markets make it the more compelling investment, especially with its stock down 35% over the past year while Etsy's has risen over 50%.
Etsy, Inc.Etsy's fiscal 2025 revenue growth was only 2.7% and net income fell from $303.3M to $163M, while it divested Depop to refocus.
MercadoLibre Inc.MercadoLibre's fiscal 2025 revenue surged 39.1% to $28.9B, net income ~$2B, and free cash flow ~$10.8B, with 49% quarterly sales growth.