Mercadolibre Shares Slide 0.94% Amid 167th Trading Volume Rank as Institutional Buys and Earnings Miss Fuel Diverging Analyst Outlooks

On August 25, 2025, Mercadolibre (MELI) fell 0.94% to $2,430.62 with a trading volume of $480 million, a 54.63% drop from the prior day, ranking 167th in market activity. Institutional investors including Douglass Winthrop Advisors and Compound Planning Inc. increased stakes in the stock during the first quarter, with holdings valued at $9.68 million and $2.84 million respectively. Analysts maintain a "Moderate Buy" consensus, citing a $2,817.22 average price target, while recent earnings missed estimates by $1.70 per share amid 33.8% year-over-year revenue growth to $6.79 billion.

Analysts highlight Mercadolibre’s integration of commerce, fintech, and advertising as a key growth driver, with expanded tools for sellers and accelerating ad revenue. However, rising competition in Brazil and potential margin pressures from increased spending remain concerns. The stock’s 12-month price-to-earnings ratio stands at 60.03, reflecting optimism around its ecosystem’s scalability despite short-term earnings volatility.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 yielded a 31.52% total return with a 0.98% average daily gain. The approach achieved a Sharpe ratio of 0.79, with maximum daily gains of 4.95% and losses of -4.47%, underscoring its capacity to capture short-term momentum amid market volatility.