MercadoLibre outpaces JD.com in stock gains, buyer growth and earnings momentum, offering better upside in 2025.
The old market adage says, “Sell in May and go away,” but this year is proving to be anything but typical. Instead of retreating, the market surged in May, with the S&P 500 posting a gain of over 6% for the month.
MELI surges 47% YTD on strong earnings and user growth, but credit risks and fierce competition prompt a cautious hold recommendation.
MercadoLibre delivered strong Q1 results, beating expectations with robust e-commerce and Fintech growth, especially in Brazil, Mexico, and Argentina. Operating margins expanded due to economies of scale, and the Fintech segment saw 73% revenue growth Y/Y with 64.3M customers, driving overall momentum. MercadoLibre is also consistently growing its gross profits, generating consistent profitability in its business.
MercadoLibre NASDAQ: MELI, an e-commerce giant operating out of Latin America, has quietly evolved into one of the fastest-growing and most dominant companies on the global stage. Though it may not yet be a household name in the U.S., the company's growth trajectory is impossible to ignore.
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MercadoLibre MELI and Block XYZ are well-known names in the growing fintech space. Both companies have gained strong attention for their digital payment solutions.
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.