Mercadolibre Surges 3.99% on $1.06 Billion Trading Volume Ranks 77th in Daily Activity

On August 22, 2025, Mercadolibre (MELI) surged 3.99% with a trading volume of $1.06 billion, ranking 77th in daily trading activity. The move followed renewed optimism after Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts during the Jackson Hole symposium, sparking broader market gains and a shift toward growth stocks. Institutional buying has also fueled momentum, with Scion Asset Management acquiring a $7.84 billion stake and other firms increasing holdings. The stock has risen 38% year-to-date, nearing its 52-week high of $2,614.

Recent developments highlight MELI’s strengthening financial profile. S&P Global Ratings upgraded the company to investment-grade status in July 2025, reinforcing confidence in its creditworthiness. Strategic partnerships, such as the expansion of Mercado Pago’s cash withdrawal capabilities via Oxxo in Mexico, underscore its growing fintech influence. Quarterly results showed $6.8 billion in revenue, a 34% year-over-year increase, driven by robust performance in digital payments and advertising. Analysts remain bullish, with brokerages setting an average price target of $2,690.29.

However, near-term challenges persist. Q2 earnings revealed a $1.70-per-share profit miss, attributed to higher shipping costs in Brazil and margin pressures from expanded free-shipping promotions. Despite this, long-term growth drivers—such as AI integration, small business support, and Latin America’s expanding e-commerce market—remain intact. Institutional ownership has trended upward, with Bank of America maintaining a $3,000 price target and a “Buy” rating.

A backtested strategy of holding the top 500 high-volume stocks for one day from 2022 to 2025 yielded a 6.98% compound annual growth rate, though it experienced a 15.59% maximum drawdown in mid-2023. The approach demonstrated steady returns but emphasized the need for risk management in high-volume trading environments.