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.
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