Why is MercadoLibre stock down today?

Traders Union
All News
Financial News
MercadoLibre slides 2.24% to $1,689 today

Highlights

MercadoLibre revenue grew 45% year-over-year, with fintech assets up 80% and advertising revenue up 67%.
Institutional ownership showed mixed moves, as some large holders increased stakes while others trimmed due to margin pressures from heavy investment in growth.
MELI trades well below major moving averages with persistent bearish momentum; projected five-day range is $1,648.16 to $1,685.66, with risk of new lows if selling continues.

Strong revenue growth tempered by margin pressure and shifting holdings

MercadoLibre reported strong underlying business performance, with revenue increasing 45% year-over-year and its fintech assets growing by 80%. Advertising revenue rose 67%, and the company expanded its digital payments, lending, and banking services in the PagBank ecosystem. Recent institutional activity included stake increases by Bank of Nova Scotia and new investments from Kora Management LP, while several other holders reduced their positions as the company faced margin pressure from investments in free shipping, marketing, and credit products, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, highlights the persistent bearish signals dominating MercadoLibre Inc.'s technical setup. He notes that the price is trading well below its key moving averages and confirms that momentum indicators reinforce the sell scenario. Institutional activity has been mixed, with some new investments but ongoing margin pressure and aggressive selling. Despite strong revenue growth, Kharitonov sees current price action reflecting market skepticism about short-term recovery. "For now, I see limited upside — the technicals and sentiment both suggest that further declines remain likely until clear reversal signals emerge."

Viktoras Karapetjanc, expert at Traders Union, remains constructive despite recent price weakness. He points to MercadoLibre’s robust revenue and fintech growth as strong long-term fundamentals. The entry of notable institutional investors signals continued confidence in the company’s expansion strategy. Karapetjanc views the current consolidation as a setup for future upside if market conditions improve. "With such top-line growth and strong fintech momentum, I expect the bullish structure to reassert once near-term volatility clears."

Bearish momentum prevails amid oversold signals and technical resistance

MELI is trading at $1,689.45, which is well below its SMA-20 ($1,798.60), SMA-50 ($1,984.17), and SMA-200 ($2,207.59). This setup points to persistent bearish pressure across short-, medium-, and long-term trends, with nearest dynamic support around $1,689 and resistance at the Kijun/Ichimoku level of $1,872. Momentum signals are mostly negative, with the MACD showing strong bearish momentum and the ADX supporting a sell scenario. Both daily and weekly RSI levels confirm a bearish environment, with Stoch RSI and CCI indicating oversold conditions but no immediate reversal, and BBP suggesting sellers dominate intraday. The current price is down 2.24% from the previous close, opening almost flat with no significant gap, and has drifted toward the lower end of today’s range ($1,700.40 – $1,742.00), reflecting moderate volatility and ongoing downward pressure since the session opened. Awesome Oscillator remains neutral, so there is some divergence between oversold oscillators and confirmed bearish momentum, but intraday action remains in line with the dominant selling tone.

Previously it was reported that MercadoLibre continued to face persistent bearish momentum, with technical indicators highlighting downside risk amid challenging market conditions. The latest analysis reinforces this outlook, emphasizing that sustained bearish signals and oversold readings heighten the risk of a breakdown below $1,648 in the near term, making this support level critical for traders to monitor.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.