MercadoLibre's $899 Million Trading Day Lands 116th in Volume Ranking

On July 17, 2025, MercadoLibre (MELI) experienced a significant trading volume of $899 million, marking a 78.49% increase from the previous day. However, the stock price declined by 2.25%, placing it at the 116th position in terms of trading volume for the day.

MercadoLibre's largest and most critical market is in Brazil, which contributes over 50% of its total revenue. However, the recent announcement of a 50% tariff on Brazilian imports by Trump has raised concerns about the potential impact on MercadoLibre's e-commerce and fintech growth in the region. The tariff could lead to a decrease in consumer spending if Brazil's economy weakens or its currency depreciates. Additionally, Brazil may retaliate with its own trade actions, which could increase costs or cause delivery delays, affecting MercadoLibre's logistics and profitability.

Despite these challenges, S&P Global Ratings recently upgraded MercadoLibre to an investment-grade BBB rating, citing the company's strong business performance, improving profitability, and careful financial management. The rating agency also noted that MercadoLibre's debt levels are expected to remain within safe limits.

MercadoLibre is facing intense competition in both its fintech and e-commerce segments. In fintech, Nubank is challenging MercadoLibre's dominance with its low-cost digital banking and AI-driven credit models. In e-commerce and advertising, Amazon and Sea Limited's Shopee are expanding their reach in Brazil and Mexico, putting pressure on MercadoLibre's market share.

MercadoLibre is also focusing on digital advertising as a growth engine, with its Mercado Ads platform helping sellers and brands reach millions of users. The launch of Mercado Play, a free streaming app on over 70 million smart TVs, adds a video layer to its ad ecosystem, unlocking fresh ad inventory and deepening user engagement.

Mercado Pago, MercadoLibre's financial arm, has announced plans to apply for a banking license in Argentina, supporting its mission to build the region's largest digital bank. The license will enable Mercado Pago to offer more products, improve user experience, and maintain its 100% digital model, potentially boosting top-line growth through expanded services.