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.

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