Increased Competitive Pressure Weighed on MercadoLibre (MELI)

1 week ago 6

Soumya Eswaran

Tue, January 27, 2026 astatine 7:50 AM CST 3 min read

Hardman Johnston Global Advisors, an concern absorption company, released its “Hardman Johnston Global Equity Strategy” capitalist missive for the 4th fourth of 2025. A transcript of the missive tin beryllium downloaded here. Global equity markets delivered robust results successful the quarter, backed by easing ostentation trends and beardown economical data. The Hardman Johnston Global Equity Strategy returned 2.91%, nett of fees, compared to the MSCI AC World Net Index’s 3.29% gain. The Financials and Consumer Staples sectors contributed to the performance, portion the Industrials and Consumer Discretionary sectors detracted from comparative performance. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Hardman Johnston Global Equity Strategy highlighted MercadoLibre, Inc. (NASDAQ:MELI) arsenic 1 of its starring detractors. MercadoLibre, Inc. (NASDAQ:MELI) is an online commerce level that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. MercadoLibre, Inc. (NASDAQ:MELI) shares traded betwixt $1,723.90 and $2,645.22 implicit the past 52 weeks. On January 26, 2026, MercadoLibre, Inc. (NASDAQ:MELI) banal closed astatine $2,212.62 per share. One-month instrumentality of MercadoLibre, Inc. (NASDAQ:MELI) was 9.49%, and its shares mislaid 3.38% of their worth implicit the past 3 months. MercadoLibre, Inc. (NASDAQ:MELI) has a marketplace capitalization of $112.174 billion.

Hardman Johnston Global Equity Strategy stated the pursuing regarding MercadoLibre, Inc. (NASDAQ:MELI) successful its 4th fourth 2025 capitalist letter:

"Within Consumer Discretionary, the largest detractors were Prosus N.V. Class N and MercadoLibre, Inc. (NASDAQ:MELI). The weakness successful MercadoLibre Inc. during the 4th fourth reflected expanding competitory unit from Amazon and the company’s committedness to reinvest and the corresponding interaction connected margins. During the quarter, Amazon launched 2 caller initiatives to pull caller merchants to the platform, including promotions astir fulfillment fees for merchants and reduced commissions for caller merchants. Competition from Amazon cannot beryllium taken lightly but we bash not judge that Amazon’s enactment erodes the moat astir MercadoLibre’s concern successful Brazil fixed the ecosystem strengths astir MercadoLibre’s best-in-class logistics web successful the region, and the synergistic ecosystem effects of their commerce, fintech, advertising, loyalty, and contented organisation offerings. We presumption the accrued competitory unit arsenic an acknowledgement of some the fertile accidental successful Brazilian ecommerce and MercadoLibre’s enactment position. Separately, MercadoLibre continues to reinvest successful its halfway offerings done little escaped shipping thresholds, greater societal commerce spend, and enlargement of its recognition paper portfolio. MercadoLibre’s spending intentions measurement connected the near-term borderline outlook and led to humble antagonistic revisions. Historically, higher concern has strengthened MercadoLibre’s competitory position."