MercadoLibre (MELI) is focusing on Gross Merchandise Volume (GMV) to drive growth in Latin America by lowering Brazil’s free shipping threshold. Third-quarter data shows a 42% increase in sold items, indicating success in capturing lower-ticket purchases. The company’s fourth-quarter GMV estimate is $19.04 billion, showing potential for continued growth.

Competition in Latin American e-commerce is intense, with Amazon (AMZN) and Sea Limited (SE) targeting similar markets. Amazon emphasizes logistics and Prime benefits, while Sea Limited uses shipping subsidies. MercadoLibre’s GMV momentum will depend on its ability to sustain growth amid different competitive strategies.

MELI shares have declined 21% in the past six months, but the stock is trading at a forward Price/Sales ratio of 2.77X. The Zacks Consensus Estimate for MELI’s fourth-quarter earnings is $11.66 per share, indicating a 7.53% year-over-year decline.

MercadoLibre currently holds a Zacks Rank #3 (Hold). Analysts predict a potential for its stock to double, highlighting a satellite-based communications firm with strong growth prospects. The company’s revenue is projected to soar in 2025, making it an attractive investment opportunity.

Read more at Nasdaq: Can MercadoLibre’s GMV Momentum Drive Further Upside in the Stock?