MercadoLibre (MELI) Stock

I recommend buying MercadoLibre because it has strong growth potential, solid technical performance, and a reasonable high P/E ratio of around 60. Even though it missed earnings expectations in Q3, the company is still showing good growth in advertising revenue, operating efficiency, and market share. Some risks include economic downturns, political issues, more competition, and rising interest rates, but MercadoLibre's fintech advancements and large market opportunities could lead to further growth.

Tariffs from Trump 2.0 might influence developing markets in 2025. At the same time, DeepSeek could change the situation.

In the most recent trading session, MercadoLibre (MELI) finished at $1,846, which is an increase of 0.14% compared to the previous day.

In the most recent trading session, MercadoLibre (MELI) finished at $1,834.51, which is a decrease of 0.08% compared to the day before.

The bull market has led to a 22% increase in the S&P 500 over the last year, while its average annual return is around 10%. Three contributors from Motley Fool suggest that Uber Technologies (NYSE: UBER), MercadoLibre (NASDAQ: MELI), and Cava Group (NYSE: CAVA) could be strong long-term investments that may do better than the overall market in the next five years. John Ballard notes that although Uber's stock has risen 162% since its low in 2022, its stable performance in the past year presents a good chance to buy.

Finding stocks that can double in value within a year is challenging. Typically, these stocks are undervalued and require a major news event to help increase their worth.

MercadoLibre (MELI 1.14%) has been a strong choice for long-term investors, but it has struggled recently after its latest earnings report. In the past two months, the stock has dropped by around 20%.

Analysts from Itau BBA believe that major e-commerce companies like Amazon.com and MercadoLibre will gain advantages from new tariffs on inexpensive imports into Mexico, especially compared to Asian retailers such as Shein and Temu.

Even though MELI is experiencing significant growth and is a leader in the market, its high valuation of 40.01X P/E indicates that it might be wise to wait for a more favorable buying opportunity in 2025 due to pressure on profit margins.