Mercado Libre remains a buy due to strong execution and a dominant ecosystem, despite recent stock weakness and competitive pressures. MELI faces heightened competition, notably from Amazon and Chinese players, but continues to outpace peers in logistics, digital experience, and fintech integration. Q3 results showed robust growth in GMV, active buyers, and fintech users, though margins and EPS missed expectations due to increased costs and competition.
MercadoLibre remains a 'Buy' after a 20% pullback, supported by robust revenue growth and strong fintech momentum. MELI posted Q3 revenue up 39% YoY, with record active buyers and expanding fintech engagement, despite margin pressures and FX headwinds. Valuation supports a fair price near $2,800, with a favorable risk/reward profile at current levels and a compelling growth-adjusted valuation.
MELI's Q3 beat on revenue but missed on earnings, as shrinking margins and rising competition cloud its outlook.
| Specialty Retail Industry | Consumer Cyclical Sector | Marcos Eduardo Galperín CEO | NASDAQ (NGS) Exchange | 58733R102 CUSIP |
| UY Country | 84,207 Employees | 16 Jan 2018 Last Dividend | - Last Split | 10 Aug 2007 IPO Date |
MercadoLibre, Inc., established in 1999 and headquartered in Montevideo, Uruguay, is a prominent online commerce company with operations primarily focused in the United States. It develops and operates a range of platforms and services designed to facilitate e-commerce and financial transactions for users, businesses, and merchants, leveraging technology to streamline commerce across its vast marketplace. Through its diversified services, including its marketplace, fintech solutions, and logistics support, MercadoLibre aims to offer a comprehensive ecosystem for online sales and payments.
An automated online commerce platform that allows individuals, businesses, and merchants to list merchandise for sale and conduct purchases. This service not only streamlines the digital sales process but also broadens the reach of sellers by connecting them with a large pool of potential buyers.
This financial technology platform facilitates transactions both on and off MercadoLibre's marketplaces by offering a secure mechanism for sending and receiving payments online. It allows users to transfer money easily through websites or apps, enhancing the convenience and safety of digital transactions.
A service enabling users to invest funds deposited in their Mercado Pago accounts. This feature provides an avenue for users to potentially grow their funds by investing through the platform, adding a layer of financial services beyond traditional e-commerce transactions.
Offers loans to selected merchants and consumers, facilitating increased purchasing power and supporting the growth of businesses on the platform. This service aims to make financing more accessible, enabling participants to leverage credit opportunities to expand operations or acquire goods.
A comprehensive logistics solution that allows sellers to utilize third-party carriers and logistics providers. It offers fulfillment and warehousing services, helping sellers to manage shipments efficiently, enhancing customer satisfaction through reliable delivery services.
An online service for classified listings, including motor vehicles, real estate, and various services. This platform simplifies the process of listing and finding goods and services, catering to a wide range of needs from personal to professional.
An advertising platform that enables brands and retailers to promote their products and services on the web. This tool allows sellers to increase visibility and reach potential customers more effectively, optimizing marketing strategies within the MercadoLibre ecosystem.
An online storefront solution that empowers users to set up, manage, and promote their digital stores. This service provides the tools necessary for merchants to establish an online presence, customize their shops, and attract customers through targeted promotion strategies.