Citi Lowers MercadoLibre (MELI) PT to $2,850, Maintains a Buy Rating

MercadoLibre Inc. (NASDAQ:MELI) is one of the best growth stocks to buy for the next 2 years. On August 18, Citi lowered the firm’s price target on MercadoLibre to $2,850 from $2,900, while keeping a Buy rating on the shares. Before this announcement, the company also announced its Q2 2205 earnings report, which demonstrated record-breaking growth in both its commerce and fintech segments.

Citi Lowers MercadoLibre (MELI) PT to $2,850, Maintains a Buy Rating

The company’s revenue increased by over 30% year-on-year, and it achieved a record income from operations of $825 million. This growth was supported by a strategic decision to lower the free shipping threshold in Brazil, which successfully attracted new users, boosted engagement, and accelerated Gross Merchandise Volume/GMV growth.

MercadoLibre’s advertising business demonstrated significant momentum, with revenue growing by 38% year-on-year. The company’s fintech arm, Mercado Pago, also saw robust performance. Its monthly active users reached 68 million, and the credit portfolio surpassed $9.3 billion, a remarkable 91% year-on-year increase.

MercadoLibre Inc. (NASDAQ:MELI) operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates an online commerce platform called Mercado Libre Marketplace and a financial technology solution platform called Mercado Pago.

While we acknowledge the potential of MELI to grow, 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 100x upside potential, check out our report about this cheapest AI stock.

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