MercadoLibre, Inc. (NASDAQ:MELI) shares fell Thursday after JPMorgan downgraded the Latin American e-commerce giant, warning that intensifying competition in Brazil and heavier investment spending could keep profit margins under pressure.
The bank cut its rating on MercadoLibre to Neutral from Overweight and lowered its price forecast to $2,100 from $2,650, citing persistent competitive pressure in Brazil—particularly from Sea Limited’s (NYSE:SE) Shopee platform—and management’s willingness to accept lower near-term margins while prioritizing growth investments.
MercadoLibre Plans $3.4B Argentina Investment
Separately, MercadoLibre expects to invest $3.4 billion in Argentina in 2026, a roughly 30% increase from the $2.6 billion planned for 2025, CEO Ariel Szarfsztejn said, Reuters reported.
The investment will support logistics expansion, new distribution centers, technology upgrades, and growth of fintech unit Mercado Pago.
The company also plans to create nearly 2,000 jobs in Argentina, where it currently employs about 16,700 people, Reuters reported.
Technical Analysis
Mercado Libre is trading 11.3% below its 20-day simple moving average (SMA) and 19.6% below its 100-day SMA, keeping both the short- and intermediate-term trend pointed down. Shares are down 17.79% over the past 12 months and are now positioned closer to …
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