Benchmark Keeps Buy Rating on MercadoLibre (MELI) After Q2 Results

MercadoLibre, Inc. (NASDAQ:MELI) is one of the 14 Best Aggressive Growth Stocks to Buy According to Analysts. On August 5, Benchmark kept its Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) with a $2,875 price target after the company reported mixed Q2 2025 results.

The company showed strong growth in key areas like gross merchandise volume (GMV), total payment volume (TPV), and revenue in both its commerce and fintech segments. However, MercadoLibre, Inc. (NASDAQ:MELI) fell short of expectations on profitability metrics.

Benchmark Keeps Buy Rating on MercadoLibre (MELI) After Q2 Results

A close-up of a customer placing an order using the company’s e-commerce platform.

The lower profits were attributed to higher marketing spending and the impact of a lower free shipping threshold in Brazil, which put pressure on margins during the quarter.

Benchmark expects MercadoLibre, Inc. (NASDAQ:MELI) to keep growing. This growth is expected to be fueled by deeper penetration in low-value categories in Brazil and continued strong performance in Mexico and Argentina. The firm also noted that the fintech side of the business is gaining momentum. The launch of a credit card in Argentina is expected to build on recent gains.

The firm also identified several tailwinds for MercadoLibre, Inc. (NASDAQ:MELI). These include increased advertising revenue supported by the company’s partnership with Google, improving net income margin after losses, and operating leverage. Because of these factors, Benchmark increased its revenue forecasts for the company for fiscal years 2025 and 2026.

MercadoLibre, Inc. (NASDAQ:MELI) is the leading e-commerce and financial technology company in Latin America. The company has a presence in 18 countries.

While we acknowledge the potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MELI and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.