MercadoLibre Stock Offers Growth Potential After Recent Pullback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Historical Performance: Since its IPO in 2007, MercadoLibre's stock has surged 6,950%, based on its closing price from that day, demonstrating strong long-term growth potential and market competitiveness.
- Consistent Revenue Growth: In Q3, MercadoLibre's revenue jumped 39% to $7.4 billion, marking its 27th consecutive quarter of over 30% revenue growth, despite facing competitive pressures and declining margins.
- Intensifying Market Competition: Despite pressures from competitors like Amazon and Shopee, MercadoLibre has managed to protect its market share by lowering the free shipping threshold in Brazil and ramping up investments in social commerce, showcasing its resilience.
- Optimistic Future Outlook: With e-commerce penetration rates in Latin America still in the mid-teens, MercadoLibre is expected to see margin expansion in 2026, indicating ample long-term growth opportunities in the market.
MELI
$2005.71+Infinity%1D
Analyst Views on MELI
Wall Street analysts forecast MELI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MELI is 2811 USD with a low forecast of 2500 USD and a high forecast of 3000 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 1998.210
Low
2500
Averages
2811
High
3000
Current: 1998.210
Low
2500
Averages
2811
High
3000
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.
