MercadoLibre Stock Volatility Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy MELI?
Source: Fool
- Stock Price Fluctuation: MercadoLibre's stock surged nearly 5% in early Thursday trading but later retraced to a mere 0.5% increase, reflecting market caution regarding its short-term performance, especially following the analyst upgrade.
- Analyst Rating Upgrade: JPMorgan analyst Marcelo Santos upgraded MercadoLibre to “overweight” and predicts growth rates exceeding 30% in Q4 2025, providing a positive outlook for the company's future performance.
- Changing Competitive Landscape: Santos noted that Shopee's increased “take rates” in Brazil suggest that price competition may be easing, which could give MercadoLibre room to expand its operating margins, despite a 260 basis point decline over the past two years.
- Future Growth Potential: The analyst set a price target of $2,800, implying a potential rise of over 30% in the next 12 months, indicating that MercadoLibre still holds appeal for investors, assuming it can maintain its current 12% margin.
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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: 2007.000
Low
2500
Averages
2783
High
2950
Current: 2007.000
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.
- Earnings Release Schedule: MercadoLibre announced it will release its fourth fiscal quarter financial results for the period ending December 31, 2025, on February 24, 2026, reflecting the company's commitment to transparency and investor confidence.
- Video and Conference Call: The company will host a video conference and conference call on the same day at 5:00 PM Eastern Time, allowing investors to engage directly through provided links, ensuring timely communication and interaction.
- Investor Relations Access: Investors can access the video webcast and audio through the investor relations section of the company's website, enhancing communication channels and improving information accessibility for stakeholders.
- Latin American E-commerce Ecosystem: MercadoLibre is the largest online commerce ecosystem in Latin America, operating in 18 countries and serving over 650 million people, showcasing its leadership position and technological advantages in the rapidly growing e-commerce market.
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- Market Expansion Potential: MercadoLibre served 76.8 million active buyers in the latest quarter, and while most revenue comes from Brazil, Argentina, and Mexico, it is expanding into higher-growth markets like Chile, Colombia, Peru, and Ecuador, which is expected to significantly boost future revenues.
- Fintech Ecosystem Growth: The fintech services had 72.2 million monthly active users in the latest quarter, and as more services are rolled out and third-party merchants are added, user numbers are likely to increase further, enhancing the company's competitive position in the market.
- Profit Growth and Cost Control: With the expansion of its higher-margin third-party marketplace, credit, and advertising segments, MercadoLibre's profits are soaring, while operating expenses are declining due to economies of scale, improving overall profitability.
- Future Growth Expectations: Analysts expect MercadoLibre's revenue and EPS to grow at CAGRs of 29% and 30% from 2024 to 2027, and with a current P/E ratio of 30 times forward earnings, it appears reasonably valued, attracting more growth-oriented investors once the Latin American market stabilizes.
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- Market Volatility Analysis: All five stocks discussed have experienced varying degrees of pullback, and this volatility is expected to continue in the foreseeable future as investors rotate their assets.
- Overdone Sell-off Assessment: Despite the market pressure, the sell-off of certain stocks appears overdone, and analysts believe these stocks remain attractive for inclusion in investment portfolios, particularly Marvell Technology.
- Marvell Technology Growth Potential: As an AI-focused company, Marvell Technology has gone through significant ups and downs, yet its growth trajectory is still viewed positively, indicating potential for long-term investment.
- Video Content Recommendation: The video will delve deeper into the performance of these stocks, encouraging viewers to subscribe to the channel and check out the special offer in the link below for more investment insights.
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- Holding Strategy: Motley Fool's Jason Hall indicates he will continue to hold shares of MercadoLibre, Brookfield Corporation, and Berkshire Hathaway despite potential future stock market crashes, reflecting his confidence in their long-term growth potential.
- Market Volatility Response: Hall's decision to hold these stocks demonstrates adaptability to market volatility, emphasizing that investors need patience and conviction to navigate short-term fluctuations in uncertain economic environments.
- Strong Fundamentals: MercadoLibre, Brookfield, and Berkshire Hathaway exhibit robust fundamentals, and Hall believes these companies will continue to perform well in future economic recoveries, potentially delivering substantial returns for investors.
- Long-Term Investment Philosophy: Hall stresses that a long-term investment philosophy is crucial for success, particularly when facing market downturns, as holding quality assets can effectively mitigate risks and enhance wealth accumulation.
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- Holding Confidence: Jason Hall expresses his intention to hold MercadoLibre, Brookfield Corporation, and Berkshire Hathaway through potential future stock market crashes, indicating strong confidence in their long-term growth potential.
- Investment Return Comparison: The Motley Fool Stock Advisor highlights past recommendations like Netflix and Nvidia, which yielded returns of 414,554% and 1,120,663% respectively, showcasing their stock-picking prowess and increasing interest in Brookfield Corporation.
- Superior Market Performance: With an average return of 884% for Stock Advisor compared to 193% for the S&P 500, this demonstrates the team's success in stock selection, potentially offering investors higher return opportunities.
- Investor Community Support: The latest top ten stock list from Motley Fool garners significant attention from investors, emphasizing its influence and trust among individual investors, further driving interest in investing in Brookfield Corporation.
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- Earnings Release Schedule: MercadoLibre has announced that it will release its financial results for the fourth fiscal quarter of 2025 on February 24, 2026, reflecting the company's ongoing commitment to transparency and investor communication.
- Video and Conference Call: The company will host a video conference and conference call on the same day at 5:00 p.m. Eastern Time, allowing investors and analysts to participate via the provided links, ensuring timely information dissemination.
- Investor Relations Access: Investors can access the video webcast and live audio through the investor relations section of the company's website, enhancing interaction and information sharing with stakeholders.
- Latin American E-commerce Ecosystem: MercadoLibre is the largest online commerce ecosystem in Latin America, operating in 18 countries and focusing on driving regional economic growth through its e-commerce platform and fintech services to meet the needs of a population of over 650 million.
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