MercadoLibre (NASDAQ:MELI) Hits New 52-Week Low After Earnings Miss

MercadoLibre, Inc. (NASDAQ:MELI)’s share price reached a new 52-week low during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $1,654.24 and last traded at $1,735.5190, with a volume of 848266 shares. 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). MercadoLibre had a return on equity of 35.38% and a net margin of 6.91%.The business had revenue of $8.76 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same quarter last year, the firm earned $12.61 earnings per share. The firm’s quarterly revenue was up 44.6% compared to the same quarter last year.

MercadoLibre News Roundup

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Very strong top‑line and segment growth — Q4 revenue rose ~44–45%, GMV and fintech (Mercado Pago) surged, and user additions accelerated; company cites AI investments as a revenue/efficiency driver. Article Title
• Positive Sentiment: Market/institutional view: some analysts and institutional holders see the pullback as a buying opportunity — institutional ownership is high and a number of firms retained Buy/Outperform ratings after the print. Article Title
• Positive Sentiment: Recent inflows/new positions: at least one asset manager (SQUADRA) initiated/added a material stake, signaling active investor interest on weakness. Article Title
• Neutral Sentiment: Analyst reactions: several firms cut price targets (examples: Barclays, Cantor, Wedbush, BTIG) but generally kept positive ratings — view is that cuts reflect near‑term margin pressure rather than a change to the long‑term thesis. Article Title
• Neutral Sentiment: Leadership/strategy update: management is accelerating investments in AI, logistics and credit to capture penetration in Brazil, Mexico and Argentina — a strategic choice that supports long‑term TAM but clouds near‑term profitability. Article Title
• Negative Sentiment: EPS miss and margin compression: Q4 EPS (~$11.03) missed consensus, driven by higher spending (lowered free‑shipping thresholds, logistics and credit growth) — investors punished the miss and the uncertainty about when margins will recover. Article Title
• Negative Sentiment: Aftermath: the mixed print triggered sharp intraday selling and some analysts trimmed near‑term estimates; margin risk is the principal downside catalyst while revenue growth is intact. Article Title

Wall Street Analysts Forecast Growth

MELI has been the topic of several research analyst reports. Barclays decreased their price target on shares of MercadoLibre from $2,900.00 to $2,600.00 and set an “overweight” rating on the stock in a research report on Wednesday. Dbs Bank upgraded MercadoLibre from a “hold” rating to a “moderate buy” rating in a research note on Tuesday, December 2nd. Cantor Fitzgerald cut their price target on MercadoLibre from $2,750.00 to $2,400.00 and set an “overweight” rating for the company in a report on Wednesday. BTIG Research reduced their price objective on MercadoLibre from $2,750.00 to $2,650.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Wedbush lowered their price objective on MercadoLibre from $2,600.00 to $2,400.00 and set an “outperform” rating on the stock in a research report on Wednesday. One investment 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 company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $2,808.67.

Insider Transactions at MercadoLibre

In related news, Director Emiliano Calemzuk sold 45 shares of MercadoLibre stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $2,027.37, for a total value of $91,231.65. Following the completion of the transaction, the director directly owned 257 shares of the company’s stock, valued at $521,034.09. The trade was a 14.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Stelleo Tolda sold 246 shares of the stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $2,047.88, for a total transaction of $503,778.48. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 1,136 shares of company stock worth $2,308,788. Insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On MercadoLibre

A number of large investors have recently modified their holdings of the stock. Highview Capital Management LLC DE acquired a new position in MercadoLibre during the second quarter valued at approximately $559,000. Resona Asset Management Co. Ltd. increased its position in shares of MercadoLibre by 4.0% in the 2nd quarter. Resona Asset Management Co. Ltd. now owns 15,308 shares of the company’s stock valued at $39,900,000 after buying an additional 585 shares in the last quarter. Weitz Investment Management Inc. acquired a new stake in MercadoLibre during the 3rd quarter worth $8,647,000. Achmea Investment Management B.V. lifted its holdings in MercadoLibre by 10.9% during the second quarter. Achmea Investment Management B.V. now owns 5,326 shares of the company’s stock worth $13,921,000 after acquiring an additional 525 shares in the last quarter. Finally, Barlow Wealth Partners Inc. grew its stake in MercadoLibre by 126.7% in the third quarter. Barlow Wealth Partners Inc. now owns 11,505 shares of the company’s stock valued at $26,886,000 after acquiring an additional 6,429 shares during the period. 87.62% of the stock is currently owned by institutional investors and hedge funds.

MercadoLibre Trading Down 1.5%

The business has a 50 day simple moving average of $2,052.43 and a 200-day simple moving average of $2,165.94. The stock has a market capitalization of $88.26 billion, a price-to-earnings ratio of 44.18, a PEG ratio of 0.87 and a beta of 1.44. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.17 and a quick ratio of 1.15.

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.