MercadoLibre Shares Drop 5.3% Following Jefferies Downgrade - News and Statistics - IndexBox
Jun 7, 2025
Shares of Latin American e-commerce and fintech company MercadoLibre (NASDAQ:MELI) experienced a decline of 5.3% in the morning session following a downgrade by Jefferies analysts. According to a report, the analysts adjusted their rating from a Buy to a Hold, citing valuation concerns after the stock's impressive run-up of over 50% year-to-date. Despite the downgrade, the analysts emphasized that this move does not reflect any negative changes in the company's fundamentals.
MercadoLibre's shares closed the day at $2,478, marking a 3.8% decrease from the previous close. The company's stock has shown volatility, with 11 movements exceeding 5% over the past year, indicating the market's sensitivity to news related to the company. This latest adjustment is seen as an opportunity for investors to secure profits after a period of significant gains.
In the broader context, MercadoLibre has demonstrated strong performance, particularly highlighted by its recent first-quarter 2025 results. The company reported a 37% increase in sales year-over-year, driven by remarkable revenue growth in Argentina and improved efficiencies in major markets such as Brazil and Mexico. According to data from IndexBox, this growth reflects the company's strategic execution and resilience in the face of currency challenges and investment pressures.
Currently trading near its 52-week high of $2,606, MercadoLibre's stock is up 40.6% since the start of the year. Investors who placed $1,000 in MercadoLibre shares five years ago would now see their investment valued at $2,890, showcasing the company's long-term value potential.
