Mercado Libre's Strategic Investments Propel Q3 2025 Net Revenue to $7.4 Billion, Achieving 27th Straight Quarter of Over 30% Year-Over-Year Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 29 2025
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Should l Buy MELI?
Source: Newsfilter
Commerce Growth: Mercado Libre reported a 39% YoY increase in net revenue to $7.4 billion, with significant growth in Brazil, Mexico, and Argentina, where items sold grew by 42%, 42%, and 34% YoY respectively.
Fintech Expansion: Mercado Pago reached 72 million monthly active users, a 29% YoY increase, with its credit portfolio growing 83% YoY to $11 billion, making it the most used credit card in Brazil.
Advertising Revenue: The company experienced a 63% YoY growth in FX-neutral advertising revenue, driven by strong performance in Brazil and Mexico, alongside new partnerships with Roku and HBO.
Impact on SMEs: Mercado Libre's ecosystem supports over 9.5 million entrepreneurs and SMEs in Latin America, providing crucial access to credit and digital payment solutions, which significantly contribute to their income and sales 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: 1740.880
Low
2500
Averages
2783
High
2950
Current: 1740.880
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.
MercadoLibre Reports 45% Revenue Growth in Q4 Amid Profit Decline
- Significant Revenue Growth: MercadoLibre's Q4 revenue surged 45% year-over-year, exceeding Wall Street expectations and indicating robust growth across all business units, despite the impact on overall profitability.
- Profitability Decline: While revenue was strong, net income fell by 13%, missing analyst expectations primarily due to heavy investments in various growth areas, leading to increased short-term profitability pressure.
- Strategic Investments: The company invested heavily in free shipping, first-party e-commerce, cross-border trade, and credit card offerings, which, although impacting short-term profits, are expected to enhance market share and customer satisfaction in the long run.
- Overreaction in Market: Despite the short-term dip in profitability, the market's 13% drop in stock price appears to be an overreaction, especially considering the company's consistent revenue growth of over 30% for 28 consecutive quarters, making the current 30 times forward earnings valuation still reasonable.
See More
MercadoLibre Declines Post-Earnings—Reasons Bulls Consider It a Buy-the-Dip Opportunity
Q4 Results and Stock Performance: Mercado Libre's Q4 results indicate strong growth, outperforming peers, despite a 10% decline in share price seen as an overreaction to business investments that are expected to pay off.
Revenue Growth and Market Strategy: The company experienced significant revenue growth of over 44.5%, driven by increased merchant and consumer traffic, with critical growth markets like Brazil, Mexico, and Argentina showing accelerated rates.
Profitability and Earnings Outlook: While earnings fell short by 41 cents, profitability remains healthy, with earnings at $11.03 per share. Analysts expect continued revenue growth, with earnings estimates above 50% for the upcoming year.
Investment Recommendations: Analysts favorably responded to the company's performance, suggesting it remains a strong buy, with a consensus target indicating significant upside potential for Mercado Libre's stock price.
See More
MercadoLibre Reports Strong Q4 Growth Amid Profitability Concerns
- Performance Growth: MercadoLibre reported strong growth in the fourth quarter, showcasing resilience in market demand despite concerns over profitability, indicating a robust business performance overall.
- Stock Price Volatility: The stock has fallen 33% from its 52-week high, including a 10% drop following the earnings announcement, reflecting investor worries about future profitability which could impact the company's financing and expansion plans.
- Market Reaction: Despite the growth in performance, the market's focus on profitability has pressured the stock price, prompting investors to closely monitor the company's future profitability strategies and market positioning.
- Investor Focus: Shareholders should pay attention to how the company addresses profitability issues, especially in an increasingly competitive environment, to ensure sustained business growth and market share.
See More
MercadoLibre Reports Strong Q4 Growth Amid Profitability Concerns
- Profitability Concerns: MercadoLibre reported strong growth in Q4, yet profitability issues are weighing on its stock, which has fallen 33% from its 52-week high, including a 10% drop post-earnings announcement, potentially impacting investor confidence and leading to capital outflows.
- Market Performance Analysis: Despite robust company performance, analysts noted that MercadoLibre did not make it onto The Motley Fool Stock Advisor's list of the top 10 stocks, which could affect its future investment appeal, especially in a highly competitive market environment.
- Investor Caution: Before investing in MercadoLibre, investors should be aware that the company failed to make the recommended list, and Stock Advisor's average return of 916% significantly outperforms the S&P 500's 194%, indicating a cautious market sentiment regarding its future performance.
- Shareholder Focus: With the ongoing decline in stock price, shareholders need to pay attention to the company's profitability and market competitiveness to assess its long-term investment value, particularly as the sustainability of profitability will be a key factor in the current economic climate.
See More
MercadoLibre Reports Strong Q4 Earnings Despite Profit Decline
- Significant Revenue Growth: MercadoLibre's Q4 revenue surged by 45%, exceeding Wall Street expectations, showcasing its robust performance in the Latin American e-commerce and fintech sectors, despite a 13% decline in net income impacting short-term profitability.
- Strong User Growth: In Q4, MercadoLibre saw a 24% increase in unique active buyers and a 42% rise in total payment volume, indicating a sustained expansion of its user base and market penetration, enhancing future growth potential.
- Clear Investment Strategy: The company heavily invested in free shipping, first-party e-commerce, cross-border trade, and credit card offerings, which, while pressuring short-term profits, will lay the groundwork for long-term growth.
- Improved Customer Satisfaction: MercadoLibre achieved record Net Promoter Scores in Brazil, Mexico, and Argentina, reflecting its ongoing leadership in customer satisfaction and further solidifying its competitive position in the market.
See More
MercadoLibre (MELI) Q4 2025 Earnings Transcript
See More
MercadoLibre Reports 45% Revenue Growth in Q4 Amid Profit Decline
- Significant Revenue Growth: MercadoLibre's Q4 revenue surged 45% year-over-year, exceeding Wall Street expectations and indicating robust growth across all business units, despite the impact on overall profitability.
- Profitability Decline: While revenue was strong, net income fell by 13%, missing analyst expectations primarily due to heavy investments in various growth areas, leading to increased short-term profitability pressure.
- Strategic Investments: The company invested heavily in free shipping, first-party e-commerce, cross-border trade, and credit card offerings, which, although impacting short-term profits, are expected to enhance market share and customer satisfaction in the long run.
- Overreaction in Market: Despite the short-term dip in profitability, the market's 13% drop in stock price appears to be an overreaction, especially considering the company's consistent revenue growth of over 30% for 28 consecutive quarters, making the current 30 times forward earnings valuation still reasonable.
See More
MercadoLibre Declines Post-Earnings—Reasons Bulls Consider It a Buy-the-Dip Opportunity
Q4 Results and Stock Performance: Mercado Libre's Q4 results indicate strong growth, outperforming peers, despite a 10% decline in share price seen as an overreaction to business investments that are expected to pay off.
Revenue Growth and Market Strategy: The company experienced significant revenue growth of over 44.5%, driven by increased merchant and consumer traffic, with critical growth markets like Brazil, Mexico, and Argentina showing accelerated rates.
Profitability and Earnings Outlook: While earnings fell short by 41 cents, profitability remains healthy, with earnings at $11.03 per share. Analysts expect continued revenue growth, with earnings estimates above 50% for the upcoming year.
Investment Recommendations: Analysts favorably responded to the company's performance, suggesting it remains a strong buy, with a consensus target indicating significant upside potential for Mercado Libre's stock price.
See More
MercadoLibre Reports Strong Q4 Growth Amid Profitability Concerns
- Performance Growth: MercadoLibre reported strong growth in the fourth quarter, showcasing resilience in market demand despite concerns over profitability, indicating a robust business performance overall.
- Stock Price Volatility: The stock has fallen 33% from its 52-week high, including a 10% drop following the earnings announcement, reflecting investor worries about future profitability which could impact the company's financing and expansion plans.
- Market Reaction: Despite the growth in performance, the market's focus on profitability has pressured the stock price, prompting investors to closely monitor the company's future profitability strategies and market positioning.
- Investor Focus: Shareholders should pay attention to how the company addresses profitability issues, especially in an increasingly competitive environment, to ensure sustained business growth and market share.
See More
MercadoLibre Reports Strong Q4 Growth Amid Profitability Concerns
- Profitability Concerns: MercadoLibre reported strong growth in Q4, yet profitability issues are weighing on its stock, which has fallen 33% from its 52-week high, including a 10% drop post-earnings announcement, potentially impacting investor confidence and leading to capital outflows.
- Market Performance Analysis: Despite robust company performance, analysts noted that MercadoLibre did not make it onto The Motley Fool Stock Advisor's list of the top 10 stocks, which could affect its future investment appeal, especially in a highly competitive market environment.
- Investor Caution: Before investing in MercadoLibre, investors should be aware that the company failed to make the recommended list, and Stock Advisor's average return of 916% significantly outperforms the S&P 500's 194%, indicating a cautious market sentiment regarding its future performance.
- Shareholder Focus: With the ongoing decline in stock price, shareholders need to pay attention to the company's profitability and market competitiveness to assess its long-term investment value, particularly as the sustainability of profitability will be a key factor in the current economic climate.
See More
MercadoLibre Reports Strong Q4 Earnings Despite Profit Decline
- Significant Revenue Growth: MercadoLibre's Q4 revenue surged by 45%, exceeding Wall Street expectations, showcasing its robust performance in the Latin American e-commerce and fintech sectors, despite a 13% decline in net income impacting short-term profitability.
- Strong User Growth: In Q4, MercadoLibre saw a 24% increase in unique active buyers and a 42% rise in total payment volume, indicating a sustained expansion of its user base and market penetration, enhancing future growth potential.
- Clear Investment Strategy: The company heavily invested in free shipping, first-party e-commerce, cross-border trade, and credit card offerings, which, while pressuring short-term profits, will lay the groundwork for long-term growth.
- Improved Customer Satisfaction: MercadoLibre achieved record Net Promoter Scores in Brazil, Mexico, and Argentina, reflecting its ongoing leadership in customer satisfaction and further solidifying its competitive position in the market.
See More
MercadoLibre (MELI) Q4 2025 Earnings Transcript
See More
