Investment Opportunities in MercadoLibre and Shopify
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MELI?
Source: Fool
- Increased Market Competition: MercadoLibre is facing heightened competition in the Latin American e-commerce market, and while the company is investing to boost its gross merchandise volume, these efforts may negatively impact margins and earnings in the short term; however, if successful, they could significantly enhance revenue and expand its ecosystem in the long run.
- Advertising Business Growth Potential: By lowering the minimum transaction amount for free shipping, MercadoLibre aims to expand its advertising segment, which not only helps increase revenue but also strengthens its network effect; although immediate benefits may not be apparent, the long-term returns could be substantial.
- Shopify's Market Position: Shopify commands about 30% of e-commerce websites in the U.S., and despite its stock declining 16% due to high valuation concerns, the company's leadership in helping merchants build online storefronts suggests it remains a valuable investment over the next five years.
- High Switching Cost Advantage: Shopify ensures merchant retention through comprehensive operational support and high switching costs, and while market volatility may affect short-term performance, its operations in over 175 countries provide a robust foundation for long-term growth.
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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: 1860.980
Low
2500
Averages
2783
High
2950
Current: 1860.980
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.
Investment Opportunities in MercadoLibre and Shopify
- Increased Market Competition: MercadoLibre is facing heightened competition in the Latin American e-commerce market, and while the company is investing to boost its gross merchandise volume, these efforts may negatively impact margins and earnings in the short term; however, if successful, they could significantly enhance revenue and expand its ecosystem in the long run.
- Advertising Business Growth Potential: By lowering the minimum transaction amount for free shipping, MercadoLibre aims to expand its advertising segment, which not only helps increase revenue but also strengthens its network effect; although immediate benefits may not be apparent, the long-term returns could be substantial.
- Shopify's Market Position: Shopify commands about 30% of e-commerce websites in the U.S., and despite its stock declining 16% due to high valuation concerns, the company's leadership in helping merchants build online storefronts suggests it remains a valuable investment over the next five years.
- High Switching Cost Advantage: Shopify ensures merchant retention through comprehensive operational support and high switching costs, and while market volatility may affect short-term performance, its operations in over 175 countries provide a robust foundation for long-term growth.
See More
Exploring Investment Opportunities in MercadoLibre
- Market Trend Analysis: In the Motley Fool Scoreboard episode, expert analysts delve into MercadoLibre's market dynamics, offering unique insights into future investment opportunities that can help investors capitalize on potential gains.
- Stock Price Reference: The stock prices mentioned in the episode are from March 4, 2026, reflecting the market's current assessment of MercadoLibre, allowing investors to gauge their investment timing.
- Rich Video Content: Released on April 22, 2026, the video covers MercadoLibre's operational model and its competitive advantages in the Latin American market, aiming to provide viewers with a comprehensive investment perspective.
- Expert Opinion Sharing: Through expert analysis, viewers gain a better understanding of MercadoLibre's potential in the e-commerce sector, particularly in the rapidly growing Latin American market, thereby enhancing investor confidence.
See More
James Hambro & Partners Cuts Stake in MercadoLibre Amid Challenges
- Stake Reduction Details: According to an SEC filing dated April 22, 2026, James Hambro & Partners LLP trimmed its stake in MercadoLibre by 28,631 shares, with an estimated transaction value of $55.23 million, reflecting the firm's strategic adjustment amid competitive pressures.
- Value Decline: The fund's position in MercadoLibre saw a decline of $62.50 million at quarter-end, indicating not only a reduction in shares but also poor stock performance, which suggests a weakening market confidence in the company.
- Market Performance Analysis: As of April 21, 2026, MercadoLibre's share price stood at $1,854.18, down 9.8% over the past year, significantly underperforming the S&P 500 by 46.8 percentage points, highlighting its competitive disadvantages in the market.
- Future Outlook and Challenges: Despite facing pressure from competitors like Amazon and Sea Limited, MercadoLibre is addressing rising doubtful accounts by cutting margins and utilizing AI, suggesting potential recovery opportunities that investors should monitor closely.
See More
Barlow Wealth Partners Reduces Stake in MercadoLibre
- Share Reduction Details: Barlow Wealth Partners reduced its holdings in MercadoLibre by 8,312 shares in Q1 2026, with an estimated sale value of $16.03 million, resulting in a $18.25 million decrease in stake value due to market fluctuations and share price changes.
- Ownership Proportion Shift: Following the reduction, MercadoLibre now represents only 0.09% of Barlow's reportable AUM, down from 2.1%, indicating a significant loss of confidence in the company.
- Market Performance Analysis: As of April 20, 2026, MercadoLibre's share price stood at $1,870.08, reflecting a 9.1% decline over the past year, significantly underperforming the S&P 500 by 45.5 percentage points, raising concerns about its future growth prospects.
- Operational Status and Outlook: Despite a 132% revenue growth over the past three years, the operating margin has dropped from 15% in 2023 to 11.1%, leading Barlow Wealth to question MercadoLibre's future profitability, even as the Latin American market remains underpenetrated.
See More
Costco and MercadoLibre: Long-Term Investment Opportunities
- Costco's Resilience: Despite increasing economic uncertainty, Costco maintains a membership retention rate above 90%, providing stability to its revenues and cash flow, with net sales increasing by 9.1% year-over-year in the second quarter, showcasing strong market performance.
- Global Expansion Strategy: With over 600 warehouses in the U.S. and nearly 300 abroad, Costco's ongoing global expansion not only enhances its market share but also boosts brand influence, further solidifying its leadership position in the retail sector.
- MercadoLibre's Ecosystem: MercadoLibre's financial services platform, Mercado Pago, saw a 90% year-over-year growth in its credit portfolio as of Q4 2025, indicating strong growth potential in the Latin American fintech sector, while overall net revenue surged 45% in the last quarter of last year, reaching $8.76 billion.
- Optimistic Market Outlook: Although MercadoLibre's stock has fallen 7% year-to-date, its forward P/E ratio slightly above 30 and analysts' bullish consensus on its ability to build an ecosystem throughout Latin America suggest immense long-term growth opportunities.
See More
Costco and MercadoLibre's Growth Potential
- High Membership Renewal: Costco boasts a remarkable 90% membership renewal rate, providing a solid level of consistency and visibility in revenue and cash flow, ensuring sustained growth amid market volatility.
- Significant Sales Growth: In the second quarter, Costco reported a 9.1% year-over-year increase in net sales, while expanding globally with over 600 warehouses in the U.S. and nearly 300 abroad, demonstrating its robust market expansion capabilities.
- Rapid Growth of MercadoLibre: MercadoLibre's net revenue surged 45% in the last quarter of the previous year, reaching $8.76 billion, while its financial services platform, Mercado Pago, saw a 90% year-over-year growth in its credit portfolio, showcasing strong growth potential in the Latin American market.
- Optimistic Market Outlook: Despite a 7% decline in MercadoLibre's stock year-to-date, its forward P/E ratio slightly above 30 indicates strong long-term growth prospects as the market remains bullish on its efforts to build an ecosystem throughout Latin America, highlighting its significant investment appeal.
See More
Investment Opportunities in MercadoLibre and Shopify
- Increased Market Competition: MercadoLibre is facing heightened competition in the Latin American e-commerce market, and while the company is investing to boost its gross merchandise volume, these efforts may negatively impact margins and earnings in the short term; however, if successful, they could significantly enhance revenue and expand its ecosystem in the long run.
- Advertising Business Growth Potential: By lowering the minimum transaction amount for free shipping, MercadoLibre aims to expand its advertising segment, which not only helps increase revenue but also strengthens its network effect; although immediate benefits may not be apparent, the long-term returns could be substantial.
- Shopify's Market Position: Shopify commands about 30% of e-commerce websites in the U.S., and despite its stock declining 16% due to high valuation concerns, the company's leadership in helping merchants build online storefronts suggests it remains a valuable investment over the next five years.
- High Switching Cost Advantage: Shopify ensures merchant retention through comprehensive operational support and high switching costs, and while market volatility may affect short-term performance, its operations in over 175 countries provide a robust foundation for long-term growth.
See More
Exploring Investment Opportunities in MercadoLibre
- Market Trend Analysis: In the Motley Fool Scoreboard episode, expert analysts delve into MercadoLibre's market dynamics, offering unique insights into future investment opportunities that can help investors capitalize on potential gains.
- Stock Price Reference: The stock prices mentioned in the episode are from March 4, 2026, reflecting the market's current assessment of MercadoLibre, allowing investors to gauge their investment timing.
- Rich Video Content: Released on April 22, 2026, the video covers MercadoLibre's operational model and its competitive advantages in the Latin American market, aiming to provide viewers with a comprehensive investment perspective.
- Expert Opinion Sharing: Through expert analysis, viewers gain a better understanding of MercadoLibre's potential in the e-commerce sector, particularly in the rapidly growing Latin American market, thereby enhancing investor confidence.
See More
James Hambro & Partners Cuts Stake in MercadoLibre Amid Challenges
- Stake Reduction Details: According to an SEC filing dated April 22, 2026, James Hambro & Partners LLP trimmed its stake in MercadoLibre by 28,631 shares, with an estimated transaction value of $55.23 million, reflecting the firm's strategic adjustment amid competitive pressures.
- Value Decline: The fund's position in MercadoLibre saw a decline of $62.50 million at quarter-end, indicating not only a reduction in shares but also poor stock performance, which suggests a weakening market confidence in the company.
- Market Performance Analysis: As of April 21, 2026, MercadoLibre's share price stood at $1,854.18, down 9.8% over the past year, significantly underperforming the S&P 500 by 46.8 percentage points, highlighting its competitive disadvantages in the market.
- Future Outlook and Challenges: Despite facing pressure from competitors like Amazon and Sea Limited, MercadoLibre is addressing rising doubtful accounts by cutting margins and utilizing AI, suggesting potential recovery opportunities that investors should monitor closely.
See More
Barlow Wealth Partners Reduces Stake in MercadoLibre
- Share Reduction Details: Barlow Wealth Partners reduced its holdings in MercadoLibre by 8,312 shares in Q1 2026, with an estimated sale value of $16.03 million, resulting in a $18.25 million decrease in stake value due to market fluctuations and share price changes.
- Ownership Proportion Shift: Following the reduction, MercadoLibre now represents only 0.09% of Barlow's reportable AUM, down from 2.1%, indicating a significant loss of confidence in the company.
- Market Performance Analysis: As of April 20, 2026, MercadoLibre's share price stood at $1,870.08, reflecting a 9.1% decline over the past year, significantly underperforming the S&P 500 by 45.5 percentage points, raising concerns about its future growth prospects.
- Operational Status and Outlook: Despite a 132% revenue growth over the past three years, the operating margin has dropped from 15% in 2023 to 11.1%, leading Barlow Wealth to question MercadoLibre's future profitability, even as the Latin American market remains underpenetrated.
See More
Costco and MercadoLibre: Long-Term Investment Opportunities
- Costco's Resilience: Despite increasing economic uncertainty, Costco maintains a membership retention rate above 90%, providing stability to its revenues and cash flow, with net sales increasing by 9.1% year-over-year in the second quarter, showcasing strong market performance.
- Global Expansion Strategy: With over 600 warehouses in the U.S. and nearly 300 abroad, Costco's ongoing global expansion not only enhances its market share but also boosts brand influence, further solidifying its leadership position in the retail sector.
- MercadoLibre's Ecosystem: MercadoLibre's financial services platform, Mercado Pago, saw a 90% year-over-year growth in its credit portfolio as of Q4 2025, indicating strong growth potential in the Latin American fintech sector, while overall net revenue surged 45% in the last quarter of last year, reaching $8.76 billion.
- Optimistic Market Outlook: Although MercadoLibre's stock has fallen 7% year-to-date, its forward P/E ratio slightly above 30 and analysts' bullish consensus on its ability to build an ecosystem throughout Latin America suggest immense long-term growth opportunities.
See More
Costco and MercadoLibre's Growth Potential
- High Membership Renewal: Costco boasts a remarkable 90% membership renewal rate, providing a solid level of consistency and visibility in revenue and cash flow, ensuring sustained growth amid market volatility.
- Significant Sales Growth: In the second quarter, Costco reported a 9.1% year-over-year increase in net sales, while expanding globally with over 600 warehouses in the U.S. and nearly 300 abroad, demonstrating its robust market expansion capabilities.
- Rapid Growth of MercadoLibre: MercadoLibre's net revenue surged 45% in the last quarter of the previous year, reaching $8.76 billion, while its financial services platform, Mercado Pago, saw a 90% year-over-year growth in its credit portfolio, showcasing strong growth potential in the Latin American market.
- Optimistic Market Outlook: Despite a 7% decline in MercadoLibre's stock year-to-date, its forward P/E ratio slightly above 30 indicates strong long-term growth prospects as the market remains bullish on its efforts to build an ecosystem throughout Latin America, highlighting its significant investment appeal.
See More
