MercadoLibre (NASDAQ:MELI) Downgraded to "Hold" Rating by Daiwa Securities Group

Key Points

• Daiwa downgraded MercadoLibre from "Buy" to "Hold" and set a $1,800 price objective, implying about a 10.4% upside from the prior close.
• Q1 results showed a strong top‑line beat—revenue rose about 49% to $8.85B—but EPS missed ($8.23 vs. ~$8.75 expected), with management citing investment‑driven margin pressure and the miss triggering a sell‑off.
• Analyst sentiment remains mixed but tilted positive: the MarketBeat consensus is a "Moderate Buy" with an average price target of $2,558.67, and institutional investors hold roughly 87.6% of shares.

MercadoLibre (NASDAQ:MELI - Get Free Report) was downgraded by analysts at Daiwa Securities Group from a "buy" rating to a "hold" rating in a research note issued to investors on Friday. They currently have a $1,800.00 price objective on the stock. Daiwa Securities Group's price target suggests a potential upside of 10.40% from the company's previous close.

A number of other equities analysts have also weighed in on the company. Jefferies Financial Group upgraded MercadoLibre from a "hold" rating to a "buy" rating and lowered their target price for the stock from $2,800.00 to $2,600.00 in a research note on Tuesday, April 7th. Zacks Research lowered MercadoLibre from a "hold" rating to a "strong sell" rating in a report on Wednesday, April 22nd. BTIG Research reiterated a "buy" rating and set a $2,400.00 price objective on shares of MercadoLibre in a research report on Friday, April 10th. UBS Group dropped their target price on MercadoLibre from $2,900.00 to $2,700.00 and set a "buy" rating for the company in a report on Friday, February 27th. Finally, JPMorgan Chase & Co. cut shares of MercadoLibre from an "overweight" rating to a "neutral" rating and reduced their target price for the company from $2,650.00 to $2,100.00 in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, MercadoLibre has an average rating of "Moderate Buy" and a consensus price target of $2,558.67.

MercadoLibre Stock Performance

Shares of NASDAQ MELI traded down $239.54 during mid-day trading on Friday, reaching $1,630.47. 1,459,755 shares of the company were exchanged, compared to its average volume of 542,613. The stock has a market capitalization of $82.66 billion, a P/E ratio of 41.38, a P/E/G ratio of 0.93 and a beta of 1.41. The company has a quick ratio of 1.15, a current ratio of 1.17 and a debt-to-equity ratio of 0.68. The company's 50-day simple moving average is $1,755.81 and its 200-day simple moving average is $1,967.33. MercadoLibre has a twelve month low of $1,593.21 and a twelve month high of $2,645.22.

MercadoLibre (NASDAQ:MELI - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $8.23 earnings per share for the quarter, missing the consensus estimate of $8.75 by ($0.52). The company had revenue of $8.85 billion during the quarter, compared to the consensus estimate of $8.29 billion. MercadoLibre had a net margin of 6.91% and a return on equity of 33.73%. The firm's revenue was up 49.0% compared to the same quarter last year. During the same period in the prior year, the company earned $9.74 earnings per share. As a group, research analysts predict that MercadoLibre will post 47.84 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of MELI. Laurel Wealth Advisors LLC bought a new position in MercadoLibre in the 4th quarter valued at about $26,000. Transamerica Financial Advisors LLC acquired a new stake in shares of MercadoLibre during the 4th quarter worth approximately $26,000. Purpose Unlimited Inc. bought a new position in MercadoLibre in the fourth quarter valued at approximately $28,000. Darwin Wealth Management LLC acquired a new position in MercadoLibre during the second quarter valued at approximately $29,000. Finally, Curio Wealth LLC bought a new stake in MercadoLibre during the fourth quarter worth $30,000. Institutional investors and hedge funds own 87.62% of the company's stock.

Trending Headlines about MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Very strong top‑line beat — net revenue +49% YoY to about $8.8–8.85B, the fastest growth since 2022, showing strong commerce, fintech and advertising momentum. Mercado Libre Kicks Off 2026 with Fastest Revenue Growth in Almost Four Years as Strategic Investments Drive Market Share Gains
• Positive Sentiment: Management points to durable growth drivers (lower free‑shipping threshold in Brazil, Mercado Pago card, first‑party selection, cross‑border) and flagged AI upside — these initiatives are gaining traction and can expand market share and monetization. MercadoLibre reports 49% revenue growth, highlights AI upside
• Neutral Sentiment: Full earnings call transcript and slides are available for details on margin drivers, country performance and KPIs — useful for modeling near‑term margin recovery timing. MercadoLibre, Inc. (MELI) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Company presentation and conference materials are posted (useful for KPIs such as GMV, active users, Mercado Pago metrics and segments). MELI stock page / conference call links
• Negative Sentiment: EPS missed consensus ($8.23 vs. ~$8.75 expected) and EPS declined year‑over‑year, reflecting higher operating and financing costs tied to strategic investments — the miss drove immediate negative sentiment. MercadoLibre's Q1 Earnings Miss Estimates, Revenues Rise Y/Y
• Negative Sentiment: Shares dropped in after‑hours trading as the EPS miss and margin pressure outweighed the revenue beat for many traders focused on near‑term profitability. MercadoLibre falls 7% as earnings miss overshadows revenue beat
• Negative Sentiment: An analyst reduced the price target (Scotiabank cut its PT), signaling potential for additional analyst revisions despite a still‑bullish medium‑term view. Scotiabank lowers price target on MELI

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.

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