Why MercadoLibre Stock Rocketed Higher on Thursday

Published: Thursday, May 8, 2025 at 6:55 pm

MercadoLibre Stock Soars After Stellar Q1 Earnings Beat Expectations

Shares of Latin American e-commerce and fintech giant MercadoLibre (MELI) experienced a significant surge on Thursday, climbing as high as 10.6% before settling up 6.7% by late afternoon. The driving force behind the impressive jump was the company's first-quarter financial report, which significantly outperformed analyst expectations.

MercadoLibre reported a robust Q1, generating $5.9 billion in revenue, a remarkable 64% year-over-year increase when measured in local currencies. This growth was fueled by a 57% surge in e-commerce revenue and a 73% jump in fintech revenue. The company also demonstrated strong profitability, with operating income reaching $763 million (up 45%) and net income hitting $494 million. This translated to earnings per share (EPS) of $9.74, a 44% increase.

Analysts had anticipated revenue of $5.52 billion and EPS of $8.27, highlighting MercadoLibre's significant outperformance. Key metrics also impressed, with gross merchandise volume (GMV) reaching $13.3 billion (up 40% in local currencies) driven by 66.6 million unique buyers. Total payment volume (TPV) also saw a substantial increase, climbing 72% to $58.3 billion.

MercadoLibre's management emphasized its focus on long-term growth during the earnings call, noting record-high brand preference in key markets like Brazil, Argentina, Mexico, and Chile. The company continues to invest in its credit portfolio, fintech offerings, and expanding its same- and next-day delivery services, all contributing to its impressive growth trajectory.

BNN's Perspective: While MercadoLibre's valuation appears high at 48 times forward earnings, the company's consistent execution and strong growth justify the premium. The company is clearly a leader in its market, and its continued expansion into fintech and delivery services positions it well for future success. Investors looking for growth potential in the Latin American market should consider MercadoLibre.

Keywords: MercadoLibre, MELI, stock, earnings, Q1, financial report, revenue, e-commerce, fintech, EPS, growth, Latin America, online retail, payment volume, GMV, stock market, investment, Brazil, Argentina, Mexico, Chile

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