From Nasdaq: 2025-05-26 10:43:00

1. MercadoLibre’s stock (MELI) has outperformed the Retail-Wholesale sector and Internet-Commerce industry with a 47.4% return YTD, driven by strong earnings and revenue growth. However, caution is advised due to headwinds faced by the company.
2. MELI expands its advertising reach with the Mercado Play app on smart TVs, offering free content to engage new audiences and benefit content studios and advertisers.
3. Earnings estimates for MELI show an upward trend, with Q2 2025 expected to see growth in both earnings and revenues.
4. Despite strong performance, MELI’s stock is considered overvalued with a premium valuation compared to the industry, signaling high growth expectations.
5. MELI faces challenges in its credit business due to a decline in profitability and structural issues, impacting margins and overall performance.
6. Intense competition in the e-commerce space from global players like Amazon, Walmart, and Alibaba threatens MELI’s market share and profitability.
7. While MercadoLibre remains a dominant player, growing headwinds and structural challenges suggest a cautious outlook for investors, with the stock currently rated as a Hold by Zacks.

Read more at Nasdaq: MercadoLibre Rises 47% YTD: Should You Buy, Sell or Hold the Stock?