Moody’s Rating Upgrades MercadoLibre, Inc. (MELI), Here’s Why

​MercadoLibre, Inc. (NASDAQ:MELI) is one of the Best Stocks to Buy and Hold for 2026. On December 18, Moody’s Ratings upgraded the company to investment grade, with a Baa3 issuer rating and also upgraded its senior unsecured notes to Baa3 from Ba1, with a stable outlook. This marks a significant step for the company as it is now rated as a low-risk investment.

​The decision stems from MercadoLibre, Inc.’s (NASDAQ:MELI) strong track record. Moody’s noted that the company has improved its debt levels, cash flow, and profitability. Moreover, Moody’s praised the company’s fintech transparency and regulatory steps, including detailed reports on past loan performance, regular filing, and future plans for digital bank licenses in Mexico and Argentina, which could unlock more banking services and credibility.

​In a different update, on December 10, MercadoLibre, Inc. (NASDAQ:MELI) announced its strategic agreement with Agility Robotics to integrate its Digit humanoid robots in the company’s facility in San Antonio.

Agility Robotics is a leading creator of the humanoid robot Digit, which is the first humanoid robot ready for industrial work. Management noted that Digit will focus on supporting commerce fulfillment by performing tasks including picking, moving totes, and navigating aisles without needing warehouse redesigns. Looking ahead, both companies plan to test the robot for additional tasks, including automating repetitive, physically demanding jobs to improve worker safety, fill labor shortages, and boost productivity.

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

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.