From Nasdaq: 2025-06-27 11:18:00

MercadoLibre’s Mercado Ads is becoming a key growth engine, offering various ad formats and expanding reach beyond its platform. With TV streaming app Mercado Play, the company targets untapped ad inventory and user engagement. Ad revenues grew nearly 50% year over year, setting the stage for further growth in Latin America’s digital ad market.

As competition in Latin America’s digital ad market heats up, Mercado Ads faces challenges from Amazon and Sea Limited. Both global players are ramping up efforts to capture ad spend in key markets like Brazil and Mexico, posing a threat to MercadoLibre’s dominance. Shopee’s expansion adds pressure on regional ad dollars, intensifying the battle for market share.

Despite fierce competition, MercadoLibre’s stock performance remains strong, outperforming industry averages. With a forward Price/Sales ratio higher than the industry average, the company’s value score is rated as D. Analysts predict a 14.60% year-over-year growth in second-quarter 2025 earnings, setting positive expectations for MercadoLibre’s future financial performance.



Read more at Nasdaq: Mercado Ads Scales Up: Can it Become MELI’s Third Growth Engine?