
MercadoLibre (MELI) Stock Forecast & Price Target
MercadoLibre (MELI) Analyst Ratings
Bulls say
MercadoLibre is experiencing substantial growth in its e-commerce segment, with Brazil's combined November/December sales increasing approximately 22% year-over-year, indicating a robust market for online shopping. The company's credit segment has also demonstrated impressive performance, with an 83% year-over-year increase in its total credit portfolio and a 69% rise in credit revenues during the third quarter. Additionally, management projects an expansion of operating margin to 11.7% by 2026, reflecting efficient operations and strategic investments in sales and marketing, which are expected to rise from 8.9% of revenues in 2024 to 11.3% in the following two years.
Bears say
MercadoLibre faces heightened competition in Brazil and sector-specific risks related to artificial intelligence, which have contributed to a negative sentiment surrounding the company's stock. The anticipated rollout of free shipping for lower average selling price (ASP) products is expected to exert additional pressure on profitability, compounded by increased spending on logistics and marketing efforts. Furthermore, advertising revenues have fallen significantly short of management's expectations, accounting for only 2.4% of gross merchandise volume (GMV) in the third quarter, which raises concerns about the long-term growth potential in that segment.
This aggregate rating is based on analysts' research of MercadoLibre and is not a guaranteed prediction by Public.com or investment advice.
MercadoLibre (MELI) Analyst Forecast & Price Prediction
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