Buy, Sell or Hold MercadoLibre Stock? Key Tips Ahead of Q1 Earnings
From Nasdaq: 2025-05-05 10:25:00
MercadoLibre (MELI) is set to announce its first-quarter 2025 results on May 7. Analysts estimate revenues of $5.53 billion, a 27.54% increase year-over-year, with earnings at $7.67 per share, growing by 13.13%. The company has a history of beating earnings estimates, and current predictions suggest another beat this quarter.
MercadoLibre’s e-commerce and fintech platforms saw significant growth in 2024, with innovations like virtual try-ons and new grocery sections driving customer engagement. The company’s strong performance is expected to continue in the first quarter of 2025. However, seasonal factors and increased competition from global rivals like Amazon and Alibaba may impact results.
Analysts forecast a decline in revenues for Argentina, Brazil, and Mexico in the first quarter of 2025, but an increase for other countries. Despite this, MercadoLibre’s stock has outperformed the market this year, driven by its presence in Latin America. However, the stock is currently trading at a premium compared to industry averages.
Investors are advised to maintain their positions in MercadoLibre ahead of earnings, as promotional activities and seasonal factors might affect marketplace take rates. While the company’s long-term prospects remain strong, current valuations suggest caution. Patient investors may benefit from waiting for a more favorable entry point.
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