UBS Remains Bullish on MercadoLibre (MELI), Cites Continued Momentum in Fintech Arm

Man GLG holds $28.29 million worth of MercadoLibre, Inc. (NASDAQ:MELI) shares, representing 0.05% of its 13-F portfolio as of Q2 2025. The company is included in Man GLG’s list of 10 stock picks with the highest upside potential.

UBS Remains Bullish on MercadoLibre (MELI), Cites Continued Momentum in Fintech Arm

On October 22, 2025, UBS reaffirmed its “Buy” rating on MercadoLibre, Inc. (NASDAQ:MELI) with a $3,000 price target.

The investment firm’s bullish stance comes despite MercadoLibre, Inc. (NASDAQ:MELI)’s 20% decline following changes to its free-shipping policy. The fall in share prices reflects market skepticism over potential margin pressure from both the free-shipping policy and higher spending on the platform, UBS noted.

The investment firm also highlighted increasing competition and economic volatility in Argentina as factors impacting margins. Yet the firm pointed to continued momentum in MercadoLibre, Inc. (NASDAQ:MELI)’s fintech arm that supports robust performance. The stock’s underperformance already incorporates consensus expectations of a nearly 160-basis-point quarter-over-quarter margin decline, UBS further noted.

The firm believes that MercadoLibre, Inc. (NASDAQ:MELI) is trading at roughly 33 times its expected 2026 earnings, roughly 20% below its one-year average. This makes the stock relatively cheaper compared to its previous valuations.

MercadoLibre, Inc. (NASDAQ:MELI) offers marketplace, payments, and logistics solutions through its leading e-commerce and fintech platforms, which it operates across Brazil, Mexico, and Argentina.

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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