MercadoLibre (MELI) Stock Forecast & Price Target

MercadoLibre boasts a significant market presence in Latin America, with approximately 150 million active users and over 600 million active listings across 18 countries, driving robust engagement and revenue streams. The company has demonstrated strong financial performance, achieving a 27% growth in e-commerce sales in Brazil during November, alongside expanding profit margins that empower continued investment in new services and products. With an upward revision of its revenue growth projection to 35% year-over-year for Q3 2025, MercadoLibre is well-positioned to leverage its diverse revenue sources, including transaction fees and advertising, to sustain its competitive advantage.

MercadoLibre faces several fundamental challenges that contribute to a negative outlook for its stock. Risks such as potential adverse changes in regulations or taxation, currency depreciation, and competitive pressures could significantly impact both its e-commerce and fintech segments, leading to weaker-than-expected growth in gross merchandise volume (GMV) and increased loan losses. Furthermore, the current macroeconomic environment in Argentina, characterized by uncertainty and recent investment increases, is likely to limit margin expansion and has contributed to recent pressures on the company's performance.