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Wedbush Lowers MercadoLibre (MELI) Price Target amid Ongoing Investment Spending

MercadoLibre, Inc. (NASDAQ:MELI) is included among the 14 Best GARP Stocks to Buy According to Analysts.

On February 25, Wedbush analyst Scott Devitt lowered the price recommendation on MercadoLibre, Inc. (NASDAQ:MELI) to $2,400 from $2,600. The analyst reiterated an Outperform rating on the shares. The firm said the company reported mixed results compared with expectations. Wedbush noted that ongoing spending will likely continue to weigh on the stock. It also said operating income upside may remain limited in the near term as the company moves through its current investment cycle.

During the Q4 2025 earnings call, CEO and President Ariel Szarfsztejn pointed to strong commerce momentum in Brazil and Mexico. He said both markets delivered 35% growth in gross merchandise volume. He added that the number of items sold in Brazil increased by 45%, driven by targeted investments, including efforts to lower the free shipping threshold. He also highlighted the growing role of artificial intelligence across the platform. He said the company’s value proposition continued to strengthen in Mexico, where GMV also rose by 35%. He added that AI investments were clearly helping accelerate overall revenue growth.

CFO Martin de Los Santos said the company’s focus on improving customer experience supported its financial performance. Net revenues increased 45% year-over-year in the fourth quarter. He also noted strong growth in the advertising business, where AI-driven improvements contributed to 67% growth. He pointed to continued strength in the fintech segment. Monthly active users have grown at nearly 30% for ten consecutive quarters. He added that the credit portfolio nearly doubled from the prior year, reaching $12.5 billion. The company also issued almost 3 million new credit cards during the fourth quarter alone.

MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguay-based e-commerce company with roots in Argentina. Its platform enables retail and wholesale transactions through online marketplaces and provides tools and services designed to help users complete and manage commercial transactions.

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.

READ NEXT: 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds and 14 Best Affordable Dividend Stocks to Buy According to Analysts

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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