MercadoLibre (NASDAQ:MELI) Reaches New 1-Year Low After Analyst Downgrade

Shares of MercadoLibre, Inc. (NASDAQ:MELI) hit a new 52-week low during trading on Thursday after JPMorgan Chase & Co. downgraded the stock from an overweight rating to a neutral rating. JPMorgan Chase & Co. now has a $2,100.00 price target on the stock, down from their previous price target of $2,650.00. MercadoLibre traded as low as $1,644.43 and last traded at $1,641.1030, with a volume of 579089 shares traded. The stock had previously closed at $1,766.10.

Several other research analysts have also issued reports on the stock. Dbs Bank raised shares of MercadoLibre from a “hold” rating to a “moderate buy” rating in a research note on Tuesday, December 2nd. Zacks Research raised shares of MercadoLibre from a “strong sell” rating to a “hold” rating in a research note on Friday, February 6th. Itau BBA Securities restated an “outperform” rating on shares of MercadoLibre in a report on Wednesday, February 25th. UBS Group reduced their price objective on shares of MercadoLibre from $2,900.00 to $2,700.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. Finally, Cantor Fitzgerald lowered their target price on shares of MercadoLibre from $2,750.00 to $2,400.00 and set an “overweight” rating for the company in a report on Wednesday, February 25th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $2,725.33.

Key Stories Impacting MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Many analysts remain constructive on MELI over the longer term — consensus still shows heavy buy/support and a well-above-current average price target, underscoring that several firms view the pullback as a buying opportunity. Article Title
• Neutral Sentiment: Morgan Stanley trimmed its price target to $2,600 — a downgrade in view but still a level implying meaningful upside versus today’s price, reflecting mixed near-term views but continued fundamental support from some large brokers. Article Title
• Neutral Sentiment: MercadoLibre committed $3.4 billion of investment in Argentina for 2026 (logistics, tech, fintech) — this should support long-term market share and growth but will pressure margins and cash flow in the near term. Article Title
• Negative Sentiment: JPMorgan downgraded MELI from Overweight to Neutral and cut its price target to $2,100, flagging margin pressure from heavy reinvestment — that call triggered immediate selling and is the main proximate cause of today’s decline. Article Title
• Negative Sentiment: Broader concerns are weighing on risk-assets: investors are pricing in margin compression from continued heavy spending (logistics, credit expansion, marketing) and short-term geopolitical risk that has amplified selling in the session. Recent coverage highlights the margin squeeze and macro/geopolitical sensitivity. Article Title

Institutional Trading of MercadoLibre

A number of hedge funds have recently modified their holdings of the company. Quadcap Wealth Management LLC raised its holdings in MercadoLibre by 4.2% during the 2nd quarter. Quadcap Wealth Management LLC now owns 124 shares of the company’s stock worth $324,000 after purchasing an additional 5 shares during the last quarter. PFW Advisors LLC boosted its stake in shares of MercadoLibre by 4.8% in the 3rd quarter. PFW Advisors LLC now owns 110 shares of the company’s stock valued at $257,000 after purchasing an additional 5 shares during the last quarter. Yousif Capital Management LLC increased its position in shares of MercadoLibre by 3.5% during the third quarter. Yousif Capital Management LLC now owns 147 shares of the company’s stock worth $344,000 after buying an additional 5 shares during the period. Wilkinson Global Asset Management LLC increased its position in shares of MercadoLibre by 2.3% during the third quarter. Wilkinson Global Asset Management LLC now owns 226 shares of the company’s stock worth $528,000 after buying an additional 5 shares during the period. Finally, Hardy Reed LLC raised its stake in MercadoLibre by 4.0% during the third quarter. Hardy Reed LLC now owns 131 shares of the company’s stock worth $306,000 after buying an additional 5 shares during the last quarter. 87.62% of the stock is currently owned by institutional investors and hedge funds.

MercadoLibre Price Performance

The firm has a market cap of $85.19 billion, a P/E ratio of 42.65, a P/E/G ratio of 0.94 and a beta of 1.48. The company has a quick ratio of 1.15, a current ratio of 1.17 and a debt-to-equity ratio of 0.68. The business’s 50 day moving average is $2,002.29 and its two-hundred day moving average is $2,124.62.

MercadoLibre (NASDAQ:MELI) last issued its quarterly earnings results on Tuesday, February 24th. The company reported $11.03 EPS for the quarter, missing analysts’ consensus estimates of $11.66 by ($0.63). MercadoLibre had a net margin of 6.91% and a return on equity of 33.73%. The firm had revenue of $8.76 billion for the quarter, compared to the consensus estimate of $8.45 billion. During the same period last year, the company posted $12.61 EPS. The business’s revenue was up 44.6% compared to the same quarter last year. As a group, analysts anticipate that MercadoLibre, Inc. will post 43.96 earnings per share for the current year.

MercadoLibre Company Profile

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.