Mercadolibre's 2.56% Surge Driven by $960M Volume, 94th Rank Amid Analyst Volatility and Institutional Split

Generated by AI AgentAinvest Market Brief
Tuesday, Aug 12, 2025 10:01 pm ET1min read
Aime RobotAime Summary

- Mercadolibre shares surged 2.56% on August 12, 2025, with $960M trading volume, ranking 94th in market activity.

- Wedbush cut Q3 2025 EPS forecast to $10.48 from $11.30 but kept 'Outperform' rating, while analysts remain split with a 'Moderate Buy' consensus and $2,700–$3,100 price targets.

- Institutional investors adjusted stakes, with Mitsubishi UFJ and Los Angeles Capital boosting holdings, while Motley Fool reduced its position by 12.4%, maintaining 87.62% ownership.

On August 12, 2025,

(MELI) shares rose 2.56%, with a trading volume of $960 million, ranking 94th in market activity. The stock’s performance followed a mixed analyst outlook and institutional investment adjustments.

Wedbush analysts revised their Q3 2025 earnings forecast for Mercadolibre downward to $10.48 per share from $11.30, while maintaining an “Outperform” rating and a $2,700 price target. The company’s Q2 2025 results showed a 33.8% year-over-year revenue increase but fell short of EPS expectations, highlighting ongoing profitability challenges. Analysts remain divided, with a “Moderate Buy” consensus and varying price targets ranging from $2,700 to $3,100.

Institutional investors adjusted their positions in the stock.

Asset Management increased its stake by 7.1%, while Los Angeles Capital Management and Prospera Financial Services significantly boosted holdings. Motley Fool Wealth Management LLC, however, reduced its position by 12.4%, reflecting cautious sentiment amid earnings volatility. Institutional ownership remains strong at 87.62% of the float.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a CAGR of 6.98%, with a maximum drawdown of 15.46% and a Sharpe ratio of 1.93. This suggests moderate short-term returns but underscores the risk of significant volatility.

Comments



Add a public comment...
No comments

No comments yet