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MercadoLibre (MELI) has reported nearly 50% year-over-year growth in its advertising segment, Mercado Ads, which is now a $1 billion-plus annual revenue business. The company’s ad offerings include Product Ads, Brand Ads, Display Ads, and Video Ads, with Display Ads seeing over 100% growth year-over-year in Q1 2025. This increase comes as Mercado Ads gains traction against growing competition from Amazon and Sea Limited in Latin America’s expanding digital ad market.
MercadoAds’ reach has been amplified by the launch of Mercado Play, its TV streaming app, which offers over 15,000 hours of content and targets a largely untapped market. In Q1 2025, the app’s launch unlocked new ad inventory, contributing to the robust performance of Mercado Ads, especially in video advertising. Ad penetration has notably increased in Brazil, Mexico, and Argentina.
MercadoLibre’s stock has risen 50.6% year-to-date, significantly outperforming the Zacks Internet – Commerce industry at 5.7% and the Retail-Wholesale sector at 2.8%. The Zacks Consensus Estimate for Q2 2025 earnings is $12.01 per share, representing a growth of 14.6% year-over-year.
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