Tariffs Threaten MercadoLibre's Growth in Brazil

MercadoLibre (MELI) stays focused on Brazil, its largest market contributing over 50% of revenues. However, Trump’s 50% tariff on Brazilian imports has caused stock to drop by over 3%. Potential retaliatory moves from Brazil could impact operations. In Q1 2025, MercadoLibre earned $3.08 billion from Brazil, with Zacks estimating 2025 revenues at $14.3 billion.

MELI plans a $5.8 billion investment in Brazil for 2025, up 48% from last year, supporting logistics, technology, marketing, and more. Facing competition from Amazon and Sea Limited in Brazil, MercadoLibre must navigate challenges to maintain momentum in its crucial market.

MELI shares have surged 41.7% YTD, outperforming the industry. With a forward Price/Sales ratio of 3.91X and a Value Score of D, MercadoLibre’s stock remains attractive. Estimates show 14.60% year-over-year growth in second-quarter 2025 earnings, highlighting strong potential for investors. MercadoLibre currently holds a Zacks Rank #3 (Hold).

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Read more at Nasdaq: Tariffs Hit Brazil: Can MELI Maintain Momentum in its Biggest Market?