MercadoLibre’s growth is concentrated in Brazil, Mexico, and Argentina, facing regional volatility. Brazil struggles with inflation, Mexico battles governance issues, and Argentina deals with political turbulence. The company heavily relies on these markets for revenue, with Q3 2025 estimates showing over 35% year-over-year growth.

While MercadoLibre faces challenges, peers Amazon and Sea Limited benefit from broader geographic diversification, reducing exposure to macro risks. MELI’s stock has increased by 25.4% YTD, but its forward Price/Sales ratio is higher than the industry average. Earnings estimates for 2025 show growth, but the company has a Value Score of F.

MercadoLibre’s heavy regional exposure leaves it vulnerable to economic and political volatility in Latin America. The company’s share price has performed well YTD, but valuation metrics and earnings growth are mixed. With a Zacks Rank of #5 (Strong Sell), MercadoLibre’s future performance remains uncertain.

Read more at Nasdaq, Inc.: Can MercadoLibre’s Regional Dependence Derail Its Growth Momentum?