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Mercado Libre - AI Stock Analysis

Analysis generated September 22, 2025

Mercado Libre, Inc. is the largest online commerce and payments ecosystem in Latin America. The company operates across multiple countries, including Argentina, Brazil, Mexico, and other key markets in the region. Founded in 1999, Mercado Libre has expanded significantly, offering a broad range of services including an e-commerce marketplace, digital payment systems through MercadoPago, and logistics solutions via MercadoEnvios. This diversified business model addresses various verticals and enhances customer experience, making it a dominant player in the Latin American market.

Fundamental Analysis

In the last quarter, Mercado Libre reported a revenue of $6.79 billion, reflecting a 14.41% increase compared to the previous quarter. This signifies robust growth, and more impressively, when compared to the same quarter last year, there was a 33.85% increase, underscoring strong year-over-year progress. Such growth rates indicate the company's strong market position and successful business strategies.

The net income for the last quarter was $523 million, which represents a modest 5.87% increase from the previous quarter. However, compared to the same quarter last year, there is a slight decline of 1.51%, which could be a point of concern. Nevertheless, this decrease is relatively minor and may not significantly impact the overall health of the company.

EBITDA for the last quarter stood at $940 million, showing a 2.51% increase from the previous quarter and a more notable 9.18% increase year-over-year. This consistent increase in EBITDA signifies operational efficiency and profitability.

One point to note is the current P/E ratio, which stands at 60.61. Generally, a high P/E ratio can indicate that the stock is overvalued, suggesting a bearish outlook. Investors should weigh this factor against the company's growth prospects and overall market conditions.

Technical Analysis

Today's stock price of Mercado Libre is $2,452.34, reflecting a 0.89% increase compared to a month ago. Over the past year, the stock has risen by 16.63%, indicating a healthy long-term trend. The bullish trend is confirmed by the current and previous SMA10 values; the current SMA10 is 2,413.67, which is higher than the previous SMA10 of 2,402.38. This positive movement suggests an upward trend in price.

Furthermore, the RSI stands at 20.1, indicating that the stock is potentially oversold. This low RSI typically signals a bullish condition, suggesting that the stock may experience upward price corrections.

Alternative Data Analysis

Job postings and employee sentiment provide a compelling look into Mercado Libre's growth prospects. With 348 open positions, an 8% increase in recent months reveals an expansion strategy, typically a healthy sign of growth. However, the business outlook among employees remains neutral and is something to monitor going forward.

Customer acquisition metrics are notably bullish. Mercado Libre has seen a stunning 26% increase in website visitors, reaching an estimated 26 million visitors. Such growth hints at rising customer interest and potential revenue growth. Furthermore, the mobile app downloads stand at 120,000 users per day, a 14% increase, further indicating strong customer engagement and an expanding user base.

However, the company has 230,000 followers on Twitter, with no significant movement in recent months, suggesting stable but not growing social media engagement. Finally, the AltIndex AI score for Mercado Libre is 73, signaling a buy recommendation based on combined fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

Mercado Libre demonstrates robust fundamental strength, evidenced by significant revenue and EBITDA growth. The company's modest decline in net income year-over-year is a minor concern but overshadowed by overall positive trends. Technical indicators support a bullish outlook, with the stock price trending upwards and the RSI signaling potential gains. Alternative data reveals strong customer acquisition metrics and a growing number of job openings, confirming the company's expansion strategy.

Based on these analyses, Mercado Libre appears to be a formidable player in the Latin American e-commerce and payments sectors, with strong growth potential and upward momentum. Investors should weigh all these factors but may consider Mercado Libre a strong buy candidate based on current evaluations.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.