MercadoLibre (MELI) Stock Sluggish Ahead of Q3 Earnings, Potential Rebound Seen
MercadoLibre's stock (MELI) has underperformed the S&P 500 this year, remaining flat despite strong growth metrics that typically spur rallies in North American peers. The disconnect between performance and valuation presents a buy-the-dip opportunity, with Q3 earnings poised as a potential catalyst.
Competitive pressures in Brazil, including reduced free-shipping thresholds and seller cost cuts, have weighed on margins despite revenue growth of 34% YoY to $6.79 billion in Q2. The stock trades at multi-year lows even as business expansion continues at an exceptional pace.