MercadoLibre is rated Buy, leveraging high growth in South American e-commerce and fintech, despite recent stock volatility. MELI demonstrates robust financials, with normalized free cash flow estimated at ~$4.5B in 2025 and a P/Normalized FCF of about 24. Valuation suggests intrinsic value above current levels, with exceptional growth potential, while also accounting for a high-risk premium.
MercadoLibre stands out as the dominant e-commerce and fintech leader in Latin America with a robust business moat. MELI demonstrates exceptional long-term financial performance and remains comfortably profitable, even amid fluctuating profit margins. Short-term margin pressures from growth investments have led to a deep valuation discount, creating a compelling entry point.
MercadoLibre remains a 'Buy,' with compelling valuation and robust growth trends despite lagging Latin American peers over the past year. MELI's Q3 revenue grew 40% YoY, but EPS missed consensus due to higher investment, shipping, and Argentine FX losses; profitability trends remain strong. Management continues prioritizing long-term growth investments, even as near-term margins narrow and EPS growth is expected to accelerate in FY 2026.
MercadoLibre stands out as a compelling rebound buy after a ~20% correction from recent highs. I see MELI's fundamentals accelerating despite global macroeconomic headwinds and persistent geopolitical risks in Latin America. The company's dual-engine model—e-commerce and fintech—dominates Brazil, Argentina, and Mexico, with logistics and payments as key value drivers.
Pictet North America Advisors SA bought 2,703 shares of MercadoLibre for an estimated $5.68 million in the fourth quarter. The quarter-end value of the MercadoLibre stake increased by $3.30 million, reflecting both trading and share price changes.
SHOP's capital-light model, global diversification and margin gains put it ahead of MELI facing Latin America volatility.
The latest trading day saw MercadoLibre (MELI) settling at $2, representing a -1.31% change from its previous close.
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?
Shipping subsidies are driving MELI's GMV surge, but rising logistics costs and squeezed margins raise questions about how durable that growth can be.
Strong top-line growth hasn't saved MELI from margin compression, fintech profitability issues and mounting Latin America headwinds.
MELI enters 2026 with higher risks as rapid credit growth shifts fintech gains from payments to lending amid macro and funding pressures.
MercadoLibre (MELI) concluded the recent trading session at $1, signifying a -2.01% move from its prior day's close.