MercadoLibre's Stock Declines Amid Broader Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy MELI?
Source: Benzinga
MercadoLibre Inc (MELI) has seen its stock price drop by 5.02%, hitting a 5-day low, as broader market indices like the Nasdaq-100 and S&P 500 also experienced declines of 0.30% and 0.36%, respectively.
The decline in MercadoLibre's stock is primarily attributed to sector rotation, as investors are shifting their focus away from growth stocks in the current market environment. Despite the company's strong revenue growth prospects, with analysts forecasting a 38% increase in revenue for 2025, the overall market sentiment has been negative, impacting stock performance.
This downturn presents a potential buying opportunity for investors who believe in MercadoLibre's long-term growth potential, especially as the Latin American e-commerce market continues to expand significantly.
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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 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
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 2034.760
Low
2500
Averages
2783
High
2950
Current: 2034.760
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.
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Aubrey Capital Fully Exits MercadoLibre Position
- Complete Exit: Aubrey Capital Management Ltd announced on February 4, 2026, that it fully liquidated its position in MercadoLibre by selling 5,638 shares valued at $13.18 million, marking a significant reduction of its stake from 4.15% to zero, indicating a major strategic shift in fund management.
- Asset Management Change: This transaction reduced Aubrey Capital's reportable assets under management to $254.07 million, reflecting a 20% decrease from the previous quarter, showcasing the fund's strategic contraction in response to changing market conditions.
- Market Performance: As of February 3, 2026, MercadoLibre's stock was priced at $2,099.90, up 10% over the past year, yet underperforming the S&P 500 by 5.4 percentage points, highlighting investor concerns regarding its future growth prospects.
- Growth Potential: Despite facing increased competition and declining profit margins, MercadoLibre's revenue grew from $22.4 billion to $26.2 billion over the past 12 months, indicating its ongoing expansion potential in the Latin American e-commerce market, which may attract growth-oriented investors looking for buying opportunities.
See More
C WorldWide Increases Stake in MercadoLibre by 517%
- Stake Increase: C WorldWide Group Holding A/S purchased an additional 44,747 shares of MercadoLibre in Q4 2026, with an estimated transaction value of approximately $93.99 million, indicating strong confidence in the Latin American market.
- Position Value Growth: The fund's quarter-end position value in MercadoLibre increased by $87.34 million, reflecting positive market expectations for the company despite its stock underperforming over the past year.
- Competitive Pressure: While MercadoLibre faces competitive pressures from Amazon and others, its fintech arm is actively addressing the rise in nonperforming loans, demonstrating the company's resilience in challenging conditions.
- Economic Recovery Opportunities: The rapid improvement in Argentina's economy and leadership changes in Venezuela may present new growth opportunities for MercadoLibre, and although its P/E ratio stands at 51, it remains attractive compared to Amazon's historical multiples.
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- Value of Advertising Platform: The Trade Desk (TTD) trades at 15 times forward earnings, and despite challenges from slowing growth and rising competition, its revenue grew 18% year-over-year in Q3 2025, indicating strong performance in the advertising space, making it a buy at current undervalued levels.
- Latin American E-commerce Giant: MercadoLibre (MELI) has excelled in the e-commerce and fintech sectors in Latin America, and despite a 13% drop from July 2025, its near-monopoly in two key segments makes it a no-brainer buy now, with a market cap of $109 billion.
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- Nvidia Growth Potential: Nvidia is projected to achieve over 50% year-over-year growth in fiscal 2027, driven by ongoing investments in the AI sector, with a current P/E ratio of just 25 times, making its stock attractive for investors looking to increase their positions.
- The Trade Desk Valuation Advantage: The Trade Desk trades at a forward P/E of only 15 times; despite facing challenges from slowing growth and rising competition, its Q3 revenue rose 18% year-over-year, showcasing its strong performance as an advertising platform, presenting a compelling buying opportunity for investors.
- MercadoLibre Market Position: MercadoLibre has excelled in the e-commerce and fintech sectors in Latin America, and although its stock is down about 13% from July 2025, its monopoly in key segments makes it a no-brainer buy right now for investors.
- Nebius Growth Expectations: Nebius expects its annual run rate to reach $7 billion to $9 billion by year-end, a significant increase from $551 million last quarter, indicating its immense potential in AI computing solutions, with 2026 poised to be a record year for revenue.
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Triasima Sells Shares of MercadoLibre in Q4 SEC Filing
- Share Sale Details: Triasima Portfolio Management Inc. disclosed the sale of 3,013 shares of MercadoLibre during Q4, valued at approximately $6.33 million, indicating a $7.19 million decrease in the fund's position, reflecting diminished confidence in the stock.
- Asset Allocation Shift: Following the sale, MercadoLibre now constitutes only 0.14% of Triasima's assets under management, highlighting its marginal position compared to major holdings like Royal Bank of Canada and Shopify, which may influence future investment strategies.
- Company Financial Performance: MercadoLibre reported $7.4 billion in net revenue for Q3, a 39% year-over-year increase, with payment volumes surging 41%, showcasing its robust growth potential in the Latin American market despite its minimal representation in Triasima's portfolio.
- Long-Term Investor Perspective: For long-term investors, the sale reflects risk management rather than weakening fundamentals, as MercadoLibre continues to excel in e-commerce and fintech, yet remains a complementary holding rather than a core investment in Triasima's strategy.
See More
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- Importance of Investment Education: Mark successfully sparked his children's interest in stock selection by playing investment games together, with his kids outperforming the market in 2025, demonstrating the significant potential of family education in fostering financial awareness.
- Values and Investment Decisions: An Italian investor explores the duality of Robinhood's tools while contemplating whether to hold its stock, emphasizing the importance of balancing personal values with social impact in investing, reflecting investors' concerns about ethical responsibility.
- Lessons from History: David Gardner reflects on past market fluctuations, highlighting that history is not just nostalgia but a source of confidence for investors, reminding them to maintain patience and optimism in uncertain markets.
- Optimism and Long-Term Investing: Tom shares his journey of wealth accumulation through long-term investing and compounding, emphasizing the key role of patience and a positive mindset in achieving investment success, encouraging more people to believe in their ability to succeed in investing.
See More
Aubrey Capital Fully Exits MercadoLibre Position
- Complete Exit: Aubrey Capital Management Ltd announced on February 4, 2026, that it fully liquidated its position in MercadoLibre by selling 5,638 shares valued at $13.18 million, marking a significant reduction of its stake from 4.15% to zero, indicating a major strategic shift in fund management.
- Asset Management Change: This transaction reduced Aubrey Capital's reportable assets under management to $254.07 million, reflecting a 20% decrease from the previous quarter, showcasing the fund's strategic contraction in response to changing market conditions.
- Market Performance: As of February 3, 2026, MercadoLibre's stock was priced at $2,099.90, up 10% over the past year, yet underperforming the S&P 500 by 5.4 percentage points, highlighting investor concerns regarding its future growth prospects.
- Growth Potential: Despite facing increased competition and declining profit margins, MercadoLibre's revenue grew from $22.4 billion to $26.2 billion over the past 12 months, indicating its ongoing expansion potential in the Latin American e-commerce market, which may attract growth-oriented investors looking for buying opportunities.
See More
C WorldWide Increases Stake in MercadoLibre by 517%
- Stake Increase: C WorldWide Group Holding A/S purchased an additional 44,747 shares of MercadoLibre in Q4 2026, with an estimated transaction value of approximately $93.99 million, indicating strong confidence in the Latin American market.
- Position Value Growth: The fund's quarter-end position value in MercadoLibre increased by $87.34 million, reflecting positive market expectations for the company despite its stock underperforming over the past year.
- Competitive Pressure: While MercadoLibre faces competitive pressures from Amazon and others, its fintech arm is actively addressing the rise in nonperforming loans, demonstrating the company's resilience in challenging conditions.
- Economic Recovery Opportunities: The rapid improvement in Argentina's economy and leadership changes in Venezuela may present new growth opportunities for MercadoLibre, and although its P/E ratio stands at 51, it remains attractive compared to Amazon's historical multiples.
See More
Five High-Potential Stocks to Invest In
- Nvidia's Continued Growth: Nvidia (NVDA) has been a top performer, with fiscal 2027 revenue expected to rise over 50% year-over-year, and its current market cap stands at $4.6 trillion, trading at just 25 times projected earnings, presenting a compelling investment opportunity.
- Value of Advertising Platform: The Trade Desk (TTD) trades at 15 times forward earnings, and despite challenges from slowing growth and rising competition, its revenue grew 18% year-over-year in Q3 2025, indicating strong performance in the advertising space, making it a buy at current undervalued levels.
- Latin American E-commerce Giant: MercadoLibre (MELI) has excelled in the e-commerce and fintech sectors in Latin America, and despite a 13% drop from July 2025, its near-monopoly in two key segments makes it a no-brainer buy now, with a market cap of $109 billion.
- Nebius's AI Potential: Nebius Group (NBIS) expects its annual run rate to reach $7 billion to $9 billion by year-end, a significant increase from $551 million last quarter, showcasing its vast potential in AI computing solutions, with 2026 poised to be a record revenue year.
See More
Five Stocks Worth Investing In Now
- Nvidia Growth Potential: Nvidia is projected to achieve over 50% year-over-year growth in fiscal 2027, driven by ongoing investments in the AI sector, with a current P/E ratio of just 25 times, making its stock attractive for investors looking to increase their positions.
- The Trade Desk Valuation Advantage: The Trade Desk trades at a forward P/E of only 15 times; despite facing challenges from slowing growth and rising competition, its Q3 revenue rose 18% year-over-year, showcasing its strong performance as an advertising platform, presenting a compelling buying opportunity for investors.
- MercadoLibre Market Position: MercadoLibre has excelled in the e-commerce and fintech sectors in Latin America, and although its stock is down about 13% from July 2025, its monopoly in key segments makes it a no-brainer buy right now for investors.
- Nebius Growth Expectations: Nebius expects its annual run rate to reach $7 billion to $9 billion by year-end, a significant increase from $551 million last quarter, indicating its immense potential in AI computing solutions, with 2026 poised to be a record year for revenue.
See More
Triasima Sells Shares of MercadoLibre in Q4 SEC Filing
- Share Sale Details: Triasima Portfolio Management Inc. disclosed the sale of 3,013 shares of MercadoLibre during Q4, valued at approximately $6.33 million, indicating a $7.19 million decrease in the fund's position, reflecting diminished confidence in the stock.
- Asset Allocation Shift: Following the sale, MercadoLibre now constitutes only 0.14% of Triasima's assets under management, highlighting its marginal position compared to major holdings like Royal Bank of Canada and Shopify, which may influence future investment strategies.
- Company Financial Performance: MercadoLibre reported $7.4 billion in net revenue for Q3, a 39% year-over-year increase, with payment volumes surging 41%, showcasing its robust growth potential in the Latin American market despite its minimal representation in Triasima's portfolio.
- Long-Term Investor Perspective: For long-term investors, the sale reflects risk management rather than weakening fundamentals, as MercadoLibre continues to excel in e-commerce and fintech, yet remains a complementary holding rather than a core investment in Triasima's strategy.
See More
