NEW YORK, June 24, 2026, 14:03 EDT
- MercadoLibre was last up 5.6% to $1,671.72 on Nasdaq as of 1:48 p.m. EDT, according to the finance feed.
- Morgan Stanley’s Andrew R. Ruben kept his Buy on the stock and held the price target at $2,450 in a report out Wednesday, TipRanks said.
- Investors weigh strong revenue gains against bottom-line pressure as free shipping and more credit drag on profit.
MercadoLibre Inc. traded higher Wednesday after Morgan Stanley reiterated its Buy rating on the Latin American e-commerce and fintech company. The bank is sticking with its recommendation to buy the stock.
The Nasdaq stock traded at $1,671.72, up $88.06, with the most recent trade showing on the finance feed at 1:48 p.m. EDT.
Andrew R. Ruben at Morgan Stanley kept his Buy call on the stock with a $2,450 price target in a note out Wednesday, according to TipRanks. TipRanks also reported a Moderate Buy rating and a $2,191.43 average target among analysts.
The stock moved higher but stayed well under its 52-week high. MarketWatch showed the range at $1,495.00 to $2,645.22. The shares were open in regular trading at 1:29 p.m. EDT, according to MarketWatch.
MercadoLibre posted first-quarter results with strong sales gains and a slimmer profit margin. The company said net revenue and financial income hit $8.8 billion, up 49% year over year. Operating income landed at $611 million, while net income was $417 million, per its May 7 release. Operating margin was 6.9%, showing profit after operating costs.
MercadoLibre’s quarterly net profit dropped 15.6%, missing what analysts were looking for, Reuters said in May. Free shipping and spending on lending pushed margins down. “We are willing to sacrifice these short term profits because we think that the opportunity is worth it,” said Leandro Cuccioli, MercadoLibre’s senior vice president of investor relations, in an interview with Reuters. Reuters
Gross merchandise value in Brazil climbed 38% in the first quarter, while items sold jumped 56%, the company said on its earnings call. CFO Martin de los Santos said shipment costs dropped 17% in local currency. “Higher demand is driving lower cost,” he said. The Motley Fool
Mercado Pago, the fintech arm, is another growth driver. Reuters said monthly active users came in at 83 million, up 29%. The credit portfolio jumped 87% to $14.6 billion. MercadoLibre’s credit card book more than doubled to $6.6 billion as the company issued 2.7 million cards. “If we see that there is opportunity to extend to more cards, we will,” Cuccioli said. Reuters
Competition remains in play. Reuters said in April that MercadoLibre is seeing more pressure from Amazon and Sea Ltd’s Shopee, especially in Brazil—its biggest market. CEO Ariel Szarfsztejn has said Brazil and Mexico are still main priorities.
The stock story may be at risk if loan growth gets ahead of funding or if shipping costs remain high. Szarfsztejn told Reuters the firm “could sell part of the loan book.” He said, “The toughest challenge for a credit portfolio that is growing so fast is having the right funding mechanisms in order to scale.” Reuters
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