MercadoLibre stock surged 5% before dropping to a 0.5% gain due to an upgrade from JPMorgan Chase analyst Marcelo Santos. Santos believes MercadoLibre can sustain growth above 30% in Brazil, setting a price target of $2,800, implying a 30% increase over 12 months.

Santos notes Shopee’s increasing “take rates” and predicts MercadoLibre can maintain good growth in Brazil, potentially hitting analyst targets by 2026. Shopee’s market share tactics may give MercadoLibre room to expand its operating margin, making the stock a potential buy.

Despite potential growth, Motley Fool Stock Advisor did not include MercadoLibre in their top 10 stocks to buy. Consider past recommendations like Netflix and Nvidia, which saw significant returns. Before investing, evaluate MercadoLibre’s position and potential for growth carefully.

Read more at Yahoo Finance: Why Did MercadoLibre Stock Pop — Then Drop?