MercadoLibre (NASDAQ:MELI) Reaches New 1-Year Low Following Weak Earnings

MercadoLibre, Inc. (NASDAQ:MELI)’s share price hit a new 52-week low during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $1,654.24 and last traded at $1,735.5190, with a volume of 848266 shares changing hands. The stock had previously closed at $1,922.56.

The company reported $11.03 EPS for the quarter, missing analysts’ consensus estimates of $11.66 by ($0.63). The business had revenue of $8.76 billion during the quarter, compared to analyst estimates of $8.45 billion. MercadoLibre had a net margin of 6.91% and a return on equity of 35.38%. The company’s revenue was up 44.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $12.61 earnings per share.

Trending Headlines about MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Q4 revenue substantially beat expectations (≈45% YoY growth driven by commerce and fintech), reinforcing long‑term growth narrative. Business Wire Q4 Release
• Positive Sentiment: Company highlights continued investments in AI and shipping that it says are supporting efficiency and market share gains — an investor case for higher long‑term GMV and fintech adoption. Seeking Alpha AI & Shipping
• Positive Sentiment: Institutional interest and selective buying cited by analysts after the pullback; a new stake (89,000 shares) by Squadra signals fresh institutional accumulation. Fool: Squadra Purchase
• Neutral Sentiment: Analysts broadly remain constructive (buy/overweight/outperform), but several firms lowered price targets (e.g., Barclays, Cantor Fitzgerald, Wedbush, BTIG) — a short‑term headwind to sentiment despite maintained positive ratings. Benzinga: PT Revisions
• Neutral Sentiment: Market commentary frames the post‑earnings decline as a potential buy‑the‑dip for long‑term holders given high revenue growth and sizable addressable market in Latin America. MarketBeat Buy‑the‑Dip
• Negative Sentiment: EPS missed estimates (Q4 EPS $11.03 vs. consensus ≈$11.65–$12.09), driven by heavier investment and margin pressure — the primary catalyst for the share drop in extended trading. Benzinga: EPS Miss
• Negative Sentiment: Margin compression from accelerated spending on logistics, incentives and fintech could keep near‑term profitability volatile; investors should expect quarter‑to‑quarter EPS variability. Zacks: Margin Pressure

Analyst Upgrades and Downgrades

MELI has been the topic of a number of recent analyst reports. Zacks Research raised shares of MercadoLibre from a “strong sell” rating to a “hold” rating in a research report on Friday, February 6th. Itau BBA Securities reaffirmed an “outperform” rating on shares of MercadoLibre in a research report on Wednesday. Dbs Bank upgraded shares of MercadoLibre from a “hold” rating to a “moderate buy” rating in a report on Tuesday, December 2nd. JPMorgan Chase & Co. upgraded MercadoLibre from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $2,650.00 to $2,800.00 in a research note on Thursday, February 12th. Finally, Wedbush lowered their price target on MercadoLibre from $2,600.00 to $2,400.00 and set an “outperform” rating for the company in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $2,808.67.

Insider Buying and Selling

In related news, Director Stelleo Tolda sold 246 shares of the company’s stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $2,047.88, for a total transaction of $503,778.48. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Emiliano Calemzuk sold 45 shares of MercadoLibre stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $2,027.37, for a total transaction of $91,231.65. Following the completion of the transaction, the director owned 257 shares of the company’s stock, valued at $521,034.09. This represents a 14.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 1,136 shares of company stock worth $2,308,788. Company insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On MercadoLibre

A number of institutional investors and hedge funds have recently modified their holdings of MELI. Laurel Wealth Advisors LLC purchased a new stake in MercadoLibre during the 4th quarter worth about $26,000. Transamerica Financial Advisors LLC acquired a new stake in shares of MercadoLibre during the 4th quarter worth about $26,000. Darwin Wealth Management LLC acquired a new stake in shares of MercadoLibre during the 2nd quarter worth about $29,000. Curio Wealth LLC purchased a new stake in MercadoLibre during the fourth quarter worth approximately $30,000. Finally, Holos Integrated Wealth LLC acquired a new position in MercadoLibre in the fourth quarter valued at approximately $32,000. Institutional investors and hedge funds own 87.62% of the company’s stock.

MercadoLibre Price Performance

The company has a debt-to-equity ratio of 0.55, a current ratio of 1.17 and a quick ratio of 1.15. The company’s 50 day simple moving average is $2,056.91 and its 200 day simple moving average is $2,168.91. The company has a market capitalization of $89.62 billion, a PE ratio of 44.87, a price-to-earnings-growth ratio of 0.95 and a beta of 1.44.

About MercadoLibre

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.