Mercadolibre's $890M Volume Surge Drives 133rd Market Rank as Daiwa Initiates Buy with $3K Target

On August 1, 2025, Mercadolibre (MELI) saw a trading volume of $0.89 billion, a 45.81% increase from the previous day, ranking it 133rd in market activity. The stock closed with a 0.09% gain.

Daiwa initiated coverage on Mercadolibre with a "Buy" rating and a $3,000 price target, highlighting confidence in its long-term growth potential. The company dominates Latin America’s e-commerce and fintech sectors, operating across 18 countries with 218 million active users and 1 million sellers. Its diversified revenue streams include payment processing, advertising, and lending, supported by a $121.4 billion market capitalization.

Financial metrics underscore Mercadolibre’s resilience. Annual revenue growth reached 39.3%, with operating and net margins at 12.81% and 9.21%, respectively. Despite a debt-to-equity ratio of 1.54, the firm’s Altman Z-Score of 4.72 and Piotroski F-Score of 7 indicate strong financial health. Analysts project continued earnings growth, reflected in a forward P/E ratio of 48.33.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the potential of high-liquidity stocks in volatile markets.