Generali Increases Stake in MercadoLibre, Signaling Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2024
0mins
Should l Buy MELI?
Source: Business Insider
MercadoLibre Inc shares rose by 3.18% and reached a 20-day high amid positive market conditions, with the Nasdaq-100 up 0.91% and the S&P 500 up 0.43%.
On January 26, 2026, Generali Powszechne Towarzystwo Emerytalne increased its stake in MercadoLibre by 5,030 shares, with an estimated transaction value of $10.57 million, indicating sustained confidence in the company. This purchase highlights MercadoLibre's significance in Generali's portfolio, representing 5.2% of its reportable assets, despite intensifying competition in the e-commerce sector. The company's shares have shown resilience, outperforming the S&P 500 by 3.85 percentage points over the past year, with a 16.9% increase.
The increase in stake by Generali reflects a strong belief in MercadoLibre's growth potential, especially as its e-commerce and fintech operations continue to expand rapidly in Latin America, providing a solid foundation for future investment returns.
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Analyst Views on MELI
Wall Street analysts forecast MELI stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 1988.260
Low
2500
Averages
2783
High
2950
Current: 1988.260
Low
2500
Averages
2783
High
2950
About MELI
MercadoLibre Inc is a Uruguay-based e-commerce business facilitator of Argentinian origins. The e-commerce products enable retail and wholesale via Internet platforms designed to provide users with a portfolio of services to facilitate commercial transactions. The Company's geographic coverage includes 18 countries of Latin America. The primary offer is an ecosystem of six integrated e-commerce services: the Mercado Libre Marketplace, the Mercado Libre Classifieds service, the Mercado Pago payments solution, the Mercado Credito financial solutions, the Mercado Envios logistic solutions including shipping, the Mercado Ads advertising platform and the Mercado Shops digital storefront solution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Performance Comparison: Over the past decade, the S&P 500 has risen by 274.3%, while the average return of the five stocks stands at 568.5%, highlighting the potential and importance of stock selection during bear markets.
- Carter's Poor Performance: Carter's stock price fell from $85.04 to $38.07, a 55% decline, primarily due to a decreasing birth rate in the U.S. and a deteriorating retail environment, leading to insufficient demand and margin compression.
- Challenges for IPG Photonics: Although IPG Photonics' stock rose from $81.59 to $113.26, a 39% increase, it faced four consecutive years of declining revenue, indicating intensified industry competition and weak market demand.
- Mercado Libre's Success: Mercado Libre's stock skyrocketed from $87.71 to $2041.50, a staggering 2227.6% increase, driven by its dominant market position in Latin America and robust growth in e-commerce, providing substantial returns for investors.
See More
Investment Opportunities and Challenges in Growth Stocks
- Alphabet's Investment Outlook: Google's parent company, Alphabet, projected capital expenditures of $175 billion to $185 billion for 2026 in its Q4 2025 report; despite appearing excessive, its liquidity of $127 billion and free cash flow of $73 billion indicate strong financial backing.
- Revenue Growth and Profitability: In 2025, Alphabet's revenue grew 15% to $403 billion, and although costs rose in tandem, its net income of $132 billion reflected a 32% annual increase, showcasing the potential returns from its investments in AI.
- MercadoLibre's Market Position: Latin America's e-commerce leader, MercadoLibre, reported a 37% year-over-year revenue increase to $20 billion in the first nine months of 2025; despite rising competition and increased non-performing loans, its net income reached $1.4 billion, growing 13% annually.
- Future Growth Potential: MercadoLibre is leveraging loan limits and AI to mitigate bad loan losses, and economic growth in Argentina and Venezuela could revive sales levels, suggesting that these improvements may drive its stock growth over time.
See More
Recommendations for Hyper-Growth Tech Stocks
- Nvidia's Market Performance: Nvidia boasts a 67.87% average annual return over the past five years, continuously launching new chips amid the AI wave, which is expected to further solidify its leadership in the data center market and attract more investor interest.
- Palantir's Growth Potential: Palantir reported a 70% year-over-year revenue increase in Q4, with a 34% rise in customer count, and its 'Rule of 40' shows a remarkable 127% growth and profitability, indicating strong market appeal despite challenges in international expansion.
- MercadoLibre's Sustained Growth: MercadoLibre excels in e-commerce and fintech in Latin America, with 115 million unique buyers and a 39% year-over-year revenue increase in Q3, demonstrating robust growth potential in a competitive market.
- ETF Investment Opportunities: The Vanguard Information Technology ETF, featuring several 'Magnificent Seven' stocks, offers a quality growth investment channel, and while market volatility is a concern, long-term investors can still benefit significantly.
See More
Nvidia Continues to Grow as Semiconductor Giant
- Nvidia's Strong Performance: Nvidia boasts a five-year average annual return of 67.87%, reflecting its robust performance amid the AI wave, with future growth likely fueled by significant investments from major tech companies in AI infrastructure.
- Palantir's Rapid Growth: Palantir's fourth-quarter revenue surged 70% year-over-year, with a 34% increase in customer count, and its 'Rule of 40' metric jumped from 81% to 127%, indicating high profitability from sales, although international expansion is hindered by a talent shortage.
- MercadoLibre's E-commerce Potential: MercadoLibre serves 115 million unique buyers and 72 million monthly active fintech users in Latin America, achieving a 39% year-over-year revenue increase and marking its 27th consecutive quarter of over 30% revenue growth, despite facing competitive pressures.
- Vanguard ETF Investment Opportunity: The Vanguard Information Technology ETF includes over 300 growth stocks, providing a convenient investment avenue, although market volatility may lead to sharper pullbacks in fast-growing stocks, necessitating readiness for long-term investors.
See More
Four Hyper-Growth Tech Stocks to Buy in 2026
- Nvidia's Strong Performance: Nvidia has excelled in the AI wave with a five-year average annual return of 67.87%, and its forward P/E ratio of 24.3 is significantly lower than the five-year average of 37.4, indicating attractive stock pricing and future growth potential.
- Palantir's Rapid Growth: Palantir posted a 70% year-over-year revenue increase in Q4, with a 34% rise in customer count, and its 'Rule of 40' score surged from 81% to 127%, demonstrating high profitability per sales dollar, despite challenges in international expansion.
- MercadoLibre's Market Potential: MercadoLibre boasts 115 million unique buyers and a 39% year-over-year revenue growth in Q3, with a net profit margin of 5.7%, and while facing competitive pressures, its forward P/E of 31 suggests attractive pricing.
- Vanguard Tech ETF Investment Opportunity: The Vanguard Information Technology ETF includes several 'Magnificent Seven' stocks, offering exposure to over 300 growth stocks, and while market volatility is a concern, long-term investors can still benefit significantly.
See More
Analysis of Marvell Technology Stock Pullback
- Market Volatility Expected: The ongoing rotation among investors suggests that market volatility will persist, and while Marvell Technology's recent pullback may seem excessive, its growth potential in the AI sector remains promising.
- Investment Recommendation: Although Marvell Technology was not included in the current top stock picks by The Motley Fool Stock Advisor, its unique position in AI technology, particularly in relation to partnerships with Nvidia and Intel, warrants attention.
- Historical Returns Comparison: Data from The Motley Fool indicates that previously recommended stocks like Netflix and Nvidia yielded returns of 414,554% and 1,120,663% respectively, highlighting the significant long-term investment value of their recommendations.
- Investor Community: Joining The Motley Fool's investor community provides access to the latest top 10 stock recommendations; while Marvell Technology is not among them, its potential market performance continues to attract investor interest.
See More
