MELI Stock Analysis: Buy, Sell, or Hold?

MELI - Mercado Libre, Inc

SERVICES-BUSINESS SERVICES, NEC
$2147.22
-0.57 (-0.03%) ▼
5d: -2.96%
30d: +6.6%
90d: -9.05%
BUY
HIGH Confidence
Last Updated: February 2, 2026
Earnings: Feb 19, 2026 15d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
🚀 STRONG BUY: MELI shows excellent value with unusually cheap options (IV 12th percentile) and market pricing in only 1.4% annual growth despite strong fundamentals. High conviction opportunity.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$2901.82
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$1801.80
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: MELI is currently trading at $2147.22, which is considered fair relative to its 30-day fair value range of $2039.55 to $2205.11. The stock's valuation (Forward PE: 36.0) is in line with its historical norms (34.6). At these levels, the market is pricing in 1.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, MELI is in a downtrend. Immediate support is located at $2028.21, while resistance sits at $2342.00.

Market Sentiment: MELI has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. In the options market, Implied Volatility is low (12th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $2817.00 (+31.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position FAIR
Fair Price Range $2039.55 - $2205.11
Company Quality Score 64/100 (BUY)
Options IV Signal 12th percentile (COMPLACENCY WARNING)
Volume Confirmation HIGH
Confidence Score 87.3%

All Signals

  • NEUTRAL: Price in fair range
  • BULLISH: Options cheap (IV 12th percentile)
  • BULLISH: Strong technical setup (75/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 31.2% below Wall St target ($2817.00)
  • NEUTRAL: Market pricing in 1.4% annual earnings growth - fairly valued

Fair Price Analysis

30-Day Fair Range $2039.55 - $2205.11
Current vs Fair Value FAIR
Expected Move (7 Days) ±$138.26 (6.4%)

Support & Resistance Levels

Support Level $2028.21
Resistance Level $2342.00
Current Trend Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 36.02
Wall Street Target $2817.00 (+31.2%)
Revenue Growth (YoY) 39.5%
Earnings Growth (YoY) 6.1%
Profit Margin 7.9%
Valuation Premium vs History +1.4% premium
PE vs Historical 36.0 vs 34.6 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +1.4% (market-implied from PE analysis)
1-Year Target $2177.28 (+1%)
2-Year Target $2207.76 (+3%)
3-Year Target $2238.67 (+4%)
3-Yr Target (if PE normalizes) (PE: 36→35) PE COMPRESSION $2150.18 (+0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 36.0, Growth: 49.2%) $7125.88 (+232%)
Base: (SPY PE: 22.3, Growth: 49.2%) $4411.15 (+105%)
Bear: (PE: 19.0, Growth: 49.2%) $3749.48 (+75%)
📈 Valuation based on Current Earnings
Forward PE: 33.00 | Forward EPS (Implied): $65.06
Bull Case $2592.77 (+21%)
Analyst growth 15.0%, PE expands to 34.7
Base Case $2147.22 (0%)
Market implied 0.0%, PE stable at 33.0
Bear Case $1642.62 (-24%)
Severe decline -15.0%, PE contracts to 29.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: February 02, 2026 7:40 PM ET
Data refreshes hourly during market hours. Next update: 8:40 PM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
1
Buys
1
Sells
0
Net
NEUTRAL
Recent Transactions
Val T. Hoyle SELL 2025-09-23
Marjorie Taylor Greene BUY 2025-08-28

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Advanced MELI Option Strategies

Professional options setups generated by AI based on today's MELI price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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