Mercadolibre's 1.18% Drop and 166th Volume Rank Amid Fintech Surge and Logistics Expansion

On August 18, 2025, Mercadolibre (MELI) fell 1.18% with a trading volume of $0.53 billion, a 46.11% decline from the prior day, ranking it 166th in volume among stocks. The e-commerce giant, dominant in Latin America, continues to expand its fintech and logistics segments. Its Mercado Pago division, a regional fintech leader, has broadened user adoption beyond its e-commerce platform, while Mercado Envios enhances delivery infrastructure. Second-quarter revenue growth in advertising nearly doubled year-over-year, reflecting increased digital ad demand.

Mercadolibre’s market cap of $121 billion remains less than 5% of Amazon’s, suggesting untapped growth potential. E-commerce metrics such as gross merchandise volume and total payment volume rose 19% and 41%, respectively, in the first half of 2025. However, rising provisions for doubtful accounts—up 57% year-over-year—highlight credit risk as fintech expansion accelerates. Despite this, the stock has outperformed the S&P 500 over the past year, though its price-to-earnings ratio of 57 remains elevated.

Backtest analysis of a strategy purchasing top 500 volume stocks and holding for one day from 2022 to 2025 yielded a 23.4% cumulative return ($2,340 profit). This indicates modest success for volume-driven short-term strategies but underscores the conservative nature of such approaches.