Should You Buy MercadoLibre Inc (MELI) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
2295.000
1 Day change
3.72%
52 Week Range
2645.220
Analysis Updated At
2026/01/26
MercadoLibre Inc (MELI) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong revenue growth, expanding market potential in Latin America, and positive analyst sentiment outweigh short-term technical and competitive concerns.
Technical Analysis
The MACD is positively expanding, indicating bullish momentum. RSI is neutral at 59.574, and moving averages are converging, showing no clear trend. The stock is trading slightly above its key support level (S1: 2046.161) and below its resistance level (R1: 2172.107), suggesting limited immediate downside risk.
Options Data
Neutral
Open Interest Put-Call Ratio
Neutral
Option Volume Put-Call Ratio
Moving Average Consensus
Sell
3
Buy
12
Positive Catalysts
2026/01/26 02:33:10
Revenue growth of 39.48% YoY in Q3
Strong market potential in Latin America with a 450% revenue increase over the past five years.
Positive analyst sentiment with multiple buy ratings and price targets significantly above the current price.
Expansion of Amazon's model in Latin America, positioning MercadoLibre as a dominant player in the region.
Neutral/Negative Catalysts
2026/01/26 02:33:10
Gross margin dropped by 5.66% YoY in Q3 2025, reflecting higher logistics and operational costs.
Increased competition in the Brazilian e-commerce market, as noted by analysts.
Short-term technical indicators suggest potential minor downside (-1.82% in the next month).
Financial Performance
In Q3 2025, MercadoLibre reported revenue of $7.409 billion, up 39.48% YoY. Net income increased by 6.05% YoY to $421 million, and EPS grew by 6% to 8.3. However, gross margin declined to 43.31%, down 5.66% YoY, due to rising logistics and operational costs.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are generally positive on MercadoLibre. Wedbush, Citi, and Benchmark maintain buy ratings with price targets ranging from $2,500 to $2,900, citing strong growth potential despite near-term margin pressures. Morgan Stanley and Barclays raised their price targets, highlighting growth in Brazil and ecosystem investments. UBS and JPMorgan are more cautious due to competition and cost concerns but still maintain favorable views.
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 2783 USD with a low forecast of 2500 USD and a high forecast of 2950 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.
11 Analyst Rating
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 2783 USD with a low forecast of 2500 USD and a high forecast of 2950 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.
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 2212.620
Low
2500
Averages
2783
High
2950
Current: 2212.620
Low
2500
Averages
2783
High
2950
Wedbush
Outperform
downgrade
AI Analysis
2025-12-19
Reason
Wedbush
Price Target
AI Analysis
2025-12-19
downgrade
Outperform
Reason
Wedbush lowered the firm's price target on MercadoLibre to $2,700 from $2,800 and keeps an Outperform rating on the shares. MercadoLibre is one of the firm's top picks as the company progresses through the current investment cycle, and Wedbush is most focused on underlying demand trends and competition across core markets, expense growth in 2026 following the impact of logistics investments and rising S&M costs, and management's ability to scale the loan book while appropriately managing risk, the analyst tells investors in a research note.
UBS
Kaio Prato
downgrade
2025-11-24
Reason
UBS
Kaio Prato
Price Target
2025-11-24
downgrade
Reason
UBS analyst Kaio Prato lowered the firm's price target on MercadoLibre to $2,900 from $3,000.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for MELI
