MercadoLibre sees a jump — What is fueling the stock rise

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MercadoLibre rises 2.42% to $1,909.54

Highlights

MercadoLibre reported Q4 2025 EPS of $8.32, missing consensus estimates of $9.30 despite maintaining over 30% year-over-year revenue growth.
Investor attention is focused on margin trends and profit volatility ahead of MercadoLibre’s next earnings report, scheduled for February 24, 2026.
MELI trades at $1,909.54, well below key moving averages, with technical signals indicating a firm bearish bias and downside risk if $1,900 support breaks.

Profit misses shift investor focus to margins amid revenue growth

MercadoLibre recently reported its fourth-quarter 2025 earnings, with an EPS of $8.32 that missed consensus estimates of $9.30. The company continued to deliver strong revenue growth year-over-year above 30%, though profits failed to meet expectations. Investor focus remains on margin trends, especially as profit performance and volatility draw further attention ahead of MercadoLibre's next scheduled earnings report on February 24, 2026.

Anton Kharitonov, expert at Traders Union, identifies a firmly bearish technical structure for MercadoLibre Inc. The stock trades under the MA-20, MA-50, and MA-200, confirming downside pressure across timeframes. Weak profit margins and the missed EPS highlight serious fundamental and sentiment concerns. Despite recent oversold signals, intraday gains appear unconvincing against the dominant trend. He warns, "Chronic underperformance and structural weakness make MELI vulnerable to further declines if key supports fail."

Viktoras Karapetjanc, expert at Traders Union, views MercadoLibre's strong 30%+ revenue growth as a signal of enduring demand and competitive strength. He sees upcoming earnings as a catalyst, especially as margin trends stabilize and the market expects a rebound. Despite the recent profit miss, longer-term growth prospects and ongoing volatility present several fresh trading setups for investors. He remarks, "The bullish structure remains intact at the fundamental level, and I expect further growth opportunities as the company executes its strategy."

Jainam Mehta, market strategist, notes a technical divergence between intraday recovery and persistent downward momentum on larger timeframes. He highlights that the oversold readings in several key indicators may set up tactical bounce trades, even as the broader trend remains negative. Mehta adds, "If price reclaims the $2,095 level, we may see a short-term reversal, but downside risks dominate below $1,900."

Upward intraday action diverges from persistent weak momentum signals

Momentum signals remain weak, with both daily MACD and ADX showing bearish momentum and limited trend strength. Oversold conditions are present in the daily RSI, Stoch RSI, and CCI, which highlights potential exhaustion of sellers, but BBP also indicates sellers continue to dominate intraday moves. The Awesome Oscillator direction matches the broader downward trend. MELI opened higher with a notable gap up from the previous close and is holding near the upper end of today's range, reflecting a gain of 2.42%. Intraday volatility is moderate to high and there is strength toward session highs, but this runs counter to the prevailing daily and weekly momentum indicators, underlining a divergence between the current price action and broader signals.

Last time, analysts noted that MercadoLibre Inc. was trading well below its key moving averages, indicating persistent downward momentum across short, medium, and long-term timeframes, as confirmed by moving averages and technical signals. Momentum indicators including MACD, RSI, and ADX suggest a pronounced bearish bias with the stock approaching oversold territory and sellers firmly controlling price action below dynamic resistance.

Source of Data: MELI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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