Whenever Wall Street analysts start to take on a view on certain stocks or industries, retail investors can benefit by following the sentiment as well as attempting to reverse engineer where these opinions are coming from, so that they might also tag along in potential upside moves as long as the dots can be connected and justified. However, not all analysts are seen as equal; some carry more conviction than others regarding public opinion.
MELI's first-quarter 2025 results benefit from a surge in commerce and fintech revenues backed by strong growth in Argentina.
I recommend buying MercadoLibre shares, despite concerns about Shopee's growth in Brazil, as MercadoLibre maintains a dominant market position and strong financial metrics. MELI's deep understanding of the Brazilian market and significant investment of $6.4 billion in Brazil reinforce its competitive edge over Shopee and Amazon. Shopee's lower average ticket price and reliance on new sellers may not sustain long-term growth, unlike MercadoLibre's established and diversified operations.
Although the revenue and EPS for MercadoLibre (MELI) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
MercadoLibre (MELI) came out with quarterly earnings of $9.74 per share, beating the Zacks Consensus Estimate of $7.67 per share. This compares to earnings of $6.78 per share a year ago.
Latin America's digital commerce giant, MercadoLibre, continues to demonstrate its influence across the region's evolving financial and retail landscape, extending its reach beyond transactions into areas critical for future growth and user engagement.
Beyond analysts' top -and-bottom-line estimates for MercadoLibre (MELI), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
MercadoLibre has consistently delivered exceptional growth and execution since its IPO in 2007, becoming the leading growth company in Latin America. MELI's diversified business model includes marketplace, payments, and credit services, with significant growth potential in an underpenetrated e-commerce market. Despite currency risks, MELI's dominant market position and potential benefits from the US-China trade war support a strong buy rating.
MercadoLibre (MELI -1.40%) stock jumped 20% in April, according to data provided by S&P Global Market Intelligence. The Latin American e-commerce giant is already a top growth stock, and it's looking even finer since the tariff program roiled the markets because it operates outside of the U.S.
MELI shows promise, but valuation remains stretched. Investors can hold the stock and wait for a better entry amid Q1 seasonality and e-commerce competition.
We initiate coverage on MercadoLibre with a Strong Buy rating and a $4,273.03 price target, driven by its leading e-commerce and fintech ecosystem in Latin America. Our bullish view is based on above-consensus revenue growth projections, driven by digital advertising, fintech expansion, and strategic logistics investments, particularly in Brazil and Mexico. Strategic investments in Brazil and Mexico are expanding fulfillment and market share, with strong operating leverage.
MercadoLibre (MELI -1.60%) is off to a great start in 2025, and investors are pleased with its performance.