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MercadoLibre (MELI) generated $3.08 billion in net revenues from Brazil in Q1 2025, marking a 20% year-over-year increase, while the Zacks Consensus Estimate for 2025 revenues from Brazil stands at $14.3 billion. The company faces potential challenges due to President Trump’s 50% tariff on Brazilian imports, which could affect Brazil’s economy and consumer spending, consequently impacting e-commerce demand.
In response, MercadoLibre plans a record 34 billion reais ($5.8 billion) investment in Brazil for 2025, a 48% increase from last year, focusing on logistics, technology, and marketing. Despite facing stiff competition from Amazon and Shopee, which are expanding their presence in Brazil, the company aims to strengthen its operations in this critical market.
MELI shares have gained 41.7% year-to-date, outpacing the Internet – Commerce sector growth of 6.8% and the Retail-Wholesale sector’s 4.5%. The forward 12-month Price/Sales ratio for MELI is 3.91, compared to the industry’s 2.17.
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