MercadoLibre (MELI) Soars 10.56% on Strong Q1 Earnings

Mercadolibre (MELI) surged to a record high today, with an intraday gain of 10.56%.

The strategy of buying MELI shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 14.57% annualized return and a 71.46% total return as of May 8, 2025. This indicates that while the strategy captured some of the subsequent price appreciation, it also experienced volatility and did not fully capitalize on longer-term gains.

MercadoLibre's stock has seen a significant upward trend due to several positive financial results and market factors. The company's Q1 2025 earnings report revealed a 44% year-over-year profit increase and a 37% revenue growth, exceeding analyst expectations. This strong financial performance has boosted investor confidence, contributing to a 26% share price increase over the last month. Additionally, favorable market conditions, including a new U.S.-U.K. trade deal and a general uptick in tech stocks, have further supported MercadoLibre's stock momentum. BTIG's revision of its price target for MercadoLibre from $2500 to $2750 also reflects optimism about the company's growth prospects, with a continued Buy recommendation. These developments align with MercadoLibre's strategic investments in logistics and financial services, enhancing its potential for future growth in Latin America's e-commerce and financial sectors.