MercadoLibre Slumps 3.27% to $1,968 After Monthly 6.65% Decline
MercadoLibre shares fell 3.27% to $1,968.28, underperforming global indexes while dropping 6.65% over the past month versus a 1.28% retail-sector gain. Analysts forecast Q1 EPS of $11.66 (–7.5% y/y) on revenue of $8.49 billion (+40.2% y/y) with a forward P/E premium of 34.2x.
1. Market Performance
MercadoLibre shares declined 3.27% to close at $1,968.28 in the latest session, while the S&P 500 rose 2.05%, the Dow advanced 2.54% and the Nasdaq gained 2.27%. Over the past month, the stock has fallen 6.65%, underperforming the Retail-Wholesale sector’s 1.28% gain and trailing the S&P 500’s 1.49% loss.
2. Upcoming Earnings Projections
Analysts project first-quarter EPS of $11.66, a 7.5% decrease from last year, on estimated revenue of $8.49 billion, up 40.2% year-over-year. Full-year consensus forecasts call for $39.80 in EPS (+5.6%) and $28.63 billion in revenue (+37.8%), reflecting continued top-line strength but moderating earnings growth.
3. Valuation and Analyst Sentiment
MercadoLibre trades at a forward P/E of 34.21, a premium to the Internet-Commerce industry average of 14.85, and holds a PEG ratio of 1.01 versus the industry’s 0.94. The company carries a Zacks Rank #4 (Sell) and sits in the bottom 34% of 250+ industries by strength, suggesting cautious analyst sentiment.