MercadoLibre, Inc.'s fundamentals remain strong despite the recent CEO transition and stock sell-off; the growth trajectory is intact, especially in Argentina. The company offers valuable diversification away from U.S. stocks and the dollar, benefiting from currency tailwinds as the dollar weakens. Short-term margin and cash flow pressures are normal growing pains; the focus should remain on MELI's rapid expansion in commerce and fintech.
MELI surges 40% YTD on e-commerce and fintech strength, but valuation and margin pressure point to a hold.
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MELI's fintech user base is set to keep climbing, fueled by deeper engagement and wider adoption of digital financial services.
MercadoLibre's net revenues reached $5.9B in Q1 2025 (+37% YoY, +64% FX-neutral), driven by triple-digit growth in Argentina and solid expansion in Brazil and Mexico. Operating income rose 45% YoY to $763M (12.9% margin); net income hit $494M with an 8.3% margin, showing profitable growth despite reinvestment. EPS grew 82% YoY; P/E FWD remains high at 51.9x, but valuation has compressed versus 5Y averages, with EPS expected to grow +28.8% CAGR.
KraneShares announced the launch of its newest single-stock leveraged ETF focused on Mercado Libre. The KraneShares 2x Long MELI Daily ETF (KMLI) trades on the Nasdaq and expands the firm's existing single-stock leveraged suite.
MercadoLibre remains Latin America's dominant e-commerce and fintech leader, with robust growth across all business lines and a strong, diversified business model. Founder Marcos Galperin's transition to Executive Chairman is well-timed, with incoming CEO Ariel Szarfsztejn deeply experienced and poised to maintain momentum. Despite trading at 37x next year's earnings, MELI's 30%+ EPS growth and wide moat justify the valuation and provide a path to meaningful upside.
MercadoLibre (MELI) is well positioned to outperform the market, as it exhibits above-average growth in financials.
MercadoLibre (MELI) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Does MercadoLibre (MELI) have what it takes to be a top stock pick for momentum investors? Let's find out.
MercadoLibre (MELI) reported earnings 30 days ago. What's next for the stock?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?