Morgan Stanley Revisits MercadoLibre (MELI) Amid Higher Logistics and Marketing Spending

MercadoLibre, Inc. (NASDAQ:MELI) is one of the 10 best large cap growth stocks to buy.

Morgan Stanley Revisits MercadoLibre (MELI) Amid Higher Logistics and Marketing Spending

Following an analyst adjustment that indicated possible margin pressure related to the company’s investment strategy, shares of MercadoLibre, Inc. (NASDAQ:MELI) came under scrutiny.

On March 2, 2026, Morgan Stanley maintained its Overweight rating, while reducing its price target on MercadoLibre, Inc. (NASDAQ:MELI) from $2,950 to $2,800.

The firm lowered its 2026 EBIT margin expectation from 11.5% to 10.1% due to an increase in spending tied to logistics and marketing, while highlighting that this boost in spending could pressure earnings.

MercadoLibre, Inc. (NASDAQ:MELI)’s leadership views the spending as part of a longer-term expansion strategy despite expectations of soft near-term margins. According to CFO Martin de los Santos, e-commerce penetration in Latin America remains low, while traditional banking systems continue to underserve significant portions of the population.

De los Santos believes that, instead of focusing on short-term profitability, MercadoLibre, Inc. (NASDAQ:MELI) is prioritizing investments that are lucrative enough to bolster its competitive moat and facilitate rapid expansion.

MercadoLibre, Inc. (NASDAQ:MELI) is a key player in the Latin American e-commerce and fintech ecosystem and specializes in offering online marketplaces, digital payments, logistics, and financial services across Brazil, Mexico, Argentina, and other regional markets.

While we acknowledge the risk and potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MELI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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