MercadoLibre (NASDAQ:MELI) Sets New 52-Week Low Following Weak Earnings

MercadoLibre, Inc. (NASDAQ:MELI) shares reached a new 52-week low during trading on Wednesday following a weaker than expected earnings announcement. The company 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 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $11.66 by ($0.63). The business had revenue of $8.76 billion for the quarter, compared to analyst estimates of $8.45 billion. MercadoLibre had a return on equity of 39.03% and a net margin of 7.93%.The firm’s revenue for the quarter was up 44.6% compared to the same quarter last year. During the same period last year, the company posted $12.61 EPS.

MercadoLibre News Summary

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Revenue and growth beat — MELI reported ~45% YoY net revenue growth for Q4 and broader 2025 momentum (strong results in Mexico, expanding unique active buyers), which supports longer‑term top-line expectations. MercadoLibre’s Q4 sales top estimates (Yahoo)
• Positive Sentiment: Strategic investments driving growth — Management highlighted continued investments in AI, logistics/shipping and Mercado Pago that are already contributing to GMV and revenue expansion (GMV +35% in Brazil & Mexico). These moves can increase market share over time even if they compress near‑term margins. Investments in AI and shipping (Seeking Alpha)
• Positive Sentiment: Analyst support remains largely bullish — Major shops preserved Buy/Outperform stances (BTIG and Wedbush trimmed price targets but kept positive ratings), signaling continued conviction in MELI’s multi-year growth story. Analyst PT changes (Benzinga)
• Neutral Sentiment: Readouts and materials available — The earnings call transcript and slide deck provide management detail on margin trajectory, AI rollouts and regional performance for investors doing deeper diligence. Q4 slide deck (MarketBeat link)
• Negative Sentiment: EPS miss and margin pressure — MELI missed quarterly EPS estimates ($11.03 vs. ~$11.65 consensus) and management flagged margin compression from investments, which prompted selling in extended trading and created short‑term downside risk. Mixed Q4 reaction (247WallSt)
• Negative Sentiment: Analyst price target trims — BTIG cut its PT to $2,650 and Wedbush trimmed to $2,400; while still positive, the reductions reflect tempered near‑term margin/earnings visibility and may cap upside in the near term. PT cuts (Benzinga)

Wall Street Analyst Weigh In

MELI has been the subject of several recent research reports. BTIG Research lowered their price target on MercadoLibre from $2,750.00 to $2,650.00 and set a “buy” rating for the company in a report on Wednesday. Dbs Bank raised MercadoLibre from a “hold” rating to a “moderate buy” rating in a research report on Tuesday, December 2nd. Itau BBA Securities reiterated an “outperform” rating on shares of MercadoLibre in a research note on Wednesday. Barclays raised their target price on MercadoLibre from $2,800.00 to $2,900.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. Finally, Wedbush lowered their price objective on shares of MercadoLibre from $2,600.00 to $2,400.00 and set an “outperform” rating for the company in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $2,828.67.

Insiders Place Their Bets

In other news, Director Emiliano Calemzuk sold 45 shares of the 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 directly owned 257 shares in the company, valued at approximately $521,034.09. This represents a 14.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Henrique Vasoncelos Dubugras sold 845 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $2,028.14, for a total transaction of $1,713,778.30. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,136 shares of company stock worth $2,308,788 in the last three months. 0.25% of the stock is owned by insiders.

Institutional Investors Weigh In On MercadoLibre

A number of institutional investors have recently modified their holdings of the stock. Highview Capital Management LLC DE bought a new position in shares of MercadoLibre during the second quarter worth about $559,000. Resona Asset Management Co. Ltd. lifted its position in 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 purchasing an additional 585 shares during the last quarter. Jennison Associates LLC boosted its stake in MercadoLibre by 7.0% during the 2nd quarter. Jennison Associates LLC now owns 1,235,240 shares of the company’s stock valued at $3,228,460,000 after purchasing an additional 81,124 shares during the period. Achmea Investment Management B.V. grew its position in MercadoLibre by 10.9% in the 2nd quarter. Achmea Investment Management B.V. now owns 5,326 shares of the company’s stock worth $13,921,000 after purchasing an additional 525 shares during the last quarter. Finally, Barlow Wealth Partners Inc. grew its position in MercadoLibre by 126.7% in the 3rd quarter. Barlow Wealth Partners Inc. now owns 11,505 shares of the company’s stock worth $26,886,000 after purchasing an additional 6,429 shares during the last quarter. Institutional investors and hedge funds own 87.62% of the company’s stock.

MercadoLibre Stock Down 8.9%

The firm’s 50 day simple moving average is $2,059.88 and its 200 day simple moving average is $2,171.73. The company has a market cap of $88.81 billion, a price-to-earnings ratio of 42.40, a price-to-earnings-growth ratio of 0.92 and a beta of 1.44. The company has a quick ratio of 1.15, a current ratio of 1.17 and a debt-to-equity ratio of 0.55.

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.