MercadoLibre’s advertising segment, MELI, is rapidly driving revenue growth, with Q4 2025 advertising revenues soaring 67% year-over-year on an FX-neutral basis. The rise is attributed to increased advertiser adoption and enhanced AI-driven ad tools that leverage first-party data to boost campaign performance. As a result, advertisers are significantly increasing their budgets, further propelling ad revenue growth.
In addition, MercadoLibre launched a demand-side platform for advertisers in China, while gross merchandise volume grew 74% on an FX-neutral basis within the same quarter. Despite these advancements, MELI is facing intensified competition from Amazon and Meta Platforms, both of which are enhancing their own AI capabilities for ad targeting. Currently, the Zacks Consensus Estimate for MELI’s first-quarter commerce revenues stands at $4.5 billion, marking a 36.6% year-over-year increase.
MercadoLibre’s stock has seen a 14.2% decline year-to-date, while the Zacks Internet–Commerce industry dropped 14.5%. Its forward Price/Sales ratio is currently 2.14X, compared to the industry average of 1.74X. Additionally, the Zacks Consensus Estimate for MELI’s 2026 earnings is forecasted at $54.95 per share, indicating a 39.47% year-over-year increase despite a recent 8.5% downgrade.
