ClearBridge Mid Cap Growth Strategy's Q2 2025 Investor Letter Highlights MercadoLibre's Robust Performance and Operating Margins

MercadoLibre (MELI) rose due to robust performance and operating margins, according to ClearBridge Investments' second-quarter 2025 investor letter. The online commerce platform's strong financials and operating margins drove its growth, particularly in its digital advertising division, Mercado Ads. MELI's shares gained 19.73% over the last 52 weeks and closed at $2,413.43 per share on August 27, 2025.

Title: MercadoLibre (MELI) Shares Surge Amid Strong Financial Performance and Analyst Upgrades

MercadoLibre (MELI) has seen a significant increase in its share price, driven by robust financial performance and positive analyst upgrades. According to ClearBridge Investments' second-quarter 2025 investor letter, the online commerce platform's strong financials and operating margins have been a key driver of growth, particularly in its digital advertising division, Mercado Ads. MELI's shares gained 19.73% over the last 52 weeks and closed at $2,413.43 per share on August 27, 2025 [1].

Analysts have been optimistic about MELI's prospects, with several firms raising their price targets. Goldman Sachs, for instance, increased its target from $2,640 to $3,000, while Citigroup lowered its target from $2,900 to $2,850 [1]. Additionally, British Columbia Investment Management Corp increased its stake in MELI by 13.4%, acquiring 1,788 additional shares, bringing its total holdings to 15,125 shares worth approximately $29.5 million [2]. This investment by institutional investors underscores the confidence in MELI's future performance.

MercadoLibre reported a quarterly earnings per share (EPS) of $10.31, which fell short of the consensus estimate of $12.01. However, the company's revenue rose by 33.8% year-over-year to $6.79 billion [1]. The firm's return on equity (ROE) was 43.06%, and its net margin was 8.52%, indicating strong operational efficiency. Analysts predict that MELI will post an average EPS of 43.96 for the current fiscal year.

Several other institutional investors have also increased their stakes in MELI. Meiji Yasuda Life Insurance Co, Formidable Asset Management LLC, Revolve Wealth Partners LLC, Sonora Investment Management Group LLC, and Beacon Capital Management LLC have all made significant increases in their holdings [1]. These investments, combined with the strong financial performance and analyst upgrades, suggest that MELI is well-positioned for continued growth.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-mercadolibre-inc-meli-shares-acquired-by-caisse-de-depot-et-placement-du-quebec-2025-08-25/
[2] https://www.marketbeat.com/instant-alerts/filing-british-columbia-investment-management-corp-acquires-1788-shares-of-mercadolibre-inc-meli-2025-08-24/