• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

MELI stock forecast ahead of MercadoLibre earnings

by February 20, 2025
by February 20, 2025

The MercadoLibre stock price has soared this year and is hovering near its all-time high as traders shift to its upcoming financial results. MELI surged to a high of $2,100 on Wednesday, its highest level since November 2025. So, is the MercadoLibre share price a buy or sell ahead of its earnings report?

MercadoLibre is a top growth company

MercadoLibre, the giant e-commerce and fintech company focusing on Latin America, is doing well as the number of users in its ecosystem rise. 

Its annual results show that revenue has jumped from $2.29 billion in 2019 to over $18 billion in the trailing twelve months. 

The company, which was established during the dot com bubble, has also become highly profitable as its annual profit crossed the $1 billion level last year.

It has achieved that by introducing more services into its solution and by growing its core e-commerce solutions. Additionally, it has boosted its infrastructure in the Latin America region, creating a moat that many e-commerce companies cannot meet. 

In addition to its e-commerce business, MercadoLibre has expanded its solutions into the advertising, logistics, acquiring, and fintech solutions. 

Its fintech business offers a day-to-day set of financial services like deposits, loans, insurance, investments, and crypto. It has accumulated over 25 million users from the Latin American region.

MELI earnings ahead

The next important catalyst for the MercadoLibre stock price is its quarterly earnings, which will come out on Thursday after the markets close. 

According to Yahoo Finance, the average revenue estimate by Wall Street analysts is that Mercado’s revenue jumped by 39% in the fourth quarter. If this is accurate, the revenue will be $5.9 billion, helped by the strong holiday season. 

These numbers will bring the company’s annual revenue to $20.67 billion, a significant increase from the $14.4 billion it made last year. 

MELI is expected to generate substantial profits, with the earnings per share being $7.56, much higher than the $3.25 it made a year earlier. The annual EPS will be $33.23, higher than the $19.47 it made a year earlier. 

The most recent numbers showed that MercadoLibre had a gross merchandise value (GMV) of over $12.9 billion in the third quarter. Its ecosystem sold over 455.9 million items, while the credit portfolio jumped by 77% to $6 billion. 

All parts of its business experienced growth during the quarter. For example, the number of monthly active users in its fintech business rose to 56.2 million, up from 41.5 million a year earlier. The amount of assets under management rose to $7.56 billion. 

MELI has two key issues. First, there is a likelihood that its revenue growth will stall in the coming years. Indeed, analysts expect that its revenue will be $25.40 billion in 2025, representing an annual rate of 22%, down from last year’s 42%. 

Second, there is the issue of valuation as it has a forward P/E ratio of 63, higher than the sector median of 17.

MELI stock price forecast

MELI chart by TradingView

The weekly chart shows that the MELI share price has been in a strong uptrend in the last few months as we predicted. This rebound started after the stock bottomed at $605 in 2022. It has now soared to $2,075, a few points below its all-time high of $2,150. 

The stock has formed an ascending channel and is slightly below its upper side. It has remained above the 50-week and 100-week moving averages, while the Relative Strength Index (RSI) and MACD have all pointed upwards.

Therefore, more upside for the MercadoLibre stock price will be confirmed if it moves above the all-time high of $2,150. A move above that level will point to more gains, possibly to $2,200.

The post MELI stock forecast ahead of MercadoLibre earnings appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Sell these overvalued Nasdaq 100 stocks at their top
next post
Walmart earnings preview: What to expect before Thursday’s opening bell

Related Posts

Britain demands antitrust regulator fuel economic growth

May 15, 2025

Amid scrutiny, Airbnb chases $1T experience market: could...

May 15, 2025

Banking stocks drag Dalal Street lower: what’s spooking...

May 15, 2025

Europe markets open: UK’s 0.7% Q1 GDP, Siemens...

May 15, 2025

Can Espinosa’s turnaround plan revive Nissan’s falling sales...

May 15, 2025

Bitcoin Pepe hits $0.0326 as presale raises $8.3M...

May 15, 2025

SoFi stock price technical analysis points to a...

May 15, 2025

Is the trade war over already?

May 15, 2025

Opendoor stock price is tanking — but this...

May 15, 2025

Here’s why the QQQ ETF, which tracks the...

May 14, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Can the Constitution Survive the Age of Rousseau?

    May 15, 2025
  • Central Banks Forgot What Drives Inflation —Tim Congdon Didn’t

    May 15, 2025
  • Britain demands antitrust regulator fuel economic growth

    May 15, 2025
  • Amid scrutiny, Airbnb chases $1T experience market: could app backlash turn into its biggest asset?

    May 15, 2025
  • Banking stocks drag Dalal Street lower: what’s spooking the financial heavyweights today?

    May 15, 2025
  • Europe markets open: UK’s 0.7% Q1 GDP, Siemens earnings in focus amid global caution

    May 15, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,105)
  • Editor's Pick (115)
  • Investing (155)
  • Stock (710)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

After XRP filing, Franklin Templeton seeks Solana...

March 13, 2025

Barclays share price has stalled: will it...

April 2, 2025

Domino’s fourth quarter: can pizza giant deliver...

February 22, 2025