MercadoLibre dominates Latin America e-commerce, facing pressure from Amazon and Alibaba

From Nasdaq: 2025-06-23 12:12:00

MercadoLibre (MELI) is dominating online shopping in Latin America with improved pricing, navigation, and product selection. Strong brand preference in key markets like Brazil, Mexico, Argentina, and Chile is driving consumer trust. Unique active buyers grew 25% year over year, boosting GMV growth in Brazil, Mexico, and Argentina.

As physical stores still dominate retail spend in Latin America, MELI sees ample room for growth with less than 5% market share. Strategic investments in user experience and infrastructure, like logistics upgrades, are driving category growth. Commerce revenues hit $3.3 billion in Q1, accounting for 55.6% of total revenues.

Facing fierce competition from global giants like Amazon and Alibaba, MercadoLibre is feeling the pressure in Latin America. Amazon’s expanding operations and Alibaba’s competitive pricing threaten MELI’s market dominance. While still leading regionally, sustained competition may challenge MELI’s pricing power and profitability in the long run.

MELI shares have surged 43% YTD, outperforming industry peers. Trading at a forward 12-month Price/Sales ratio of 3.96X, MELI has a Value Score of D. The consensus estimate for Q2 2025 earnings stands at $12.01 per share, reflecting a 2.65% upward revision and 14.60% YoY growth.

Analysts project MercadoLibre’s 2025 earnings to reach $47.75 per share, indicating 26.69% YoY growth. Despite recent downward revision, MELI holds a Zacks Rank #3 (Hold). For potential stock picks with high growth potential, Zacks recommends exploring the top stock and runners-up identified by their experts.



Read more at Nasdaq: E-Commerce Booms in Latin America: Can MercadoLibre Win the Market?