economy
February 23, 2026
This Latin American rival to Amazon reports earnings this week. How to trade it with options
The Street expects MercadoLibre will do about $28.6 billion in revenue in 2025. Operating expenses have grown faster than revenue.
TL;DR
- MercadoLibre is the largest e-commerce and fintech ecosystem in Latin America, operating in 18 countries.
- Third-quarter 2025 revenue reached $7.41 billion, a 39% year-over-year increase.
- Street consensus estimates $28.6 billion in revenue for 2025.
- Operating expenses are growing faster than revenues, causing margin compression.
- E-commerce penetration in Latin America remains low, presenting a significant growth runway.
- The stock has traded poorly technically, remaining below key moving averages and at January 2021 levels.
- Investors are conflicted due to strong top-line growth versus rising operating expenses.
- Trading MercadoLibre options is expensive due to the high share price but can offer attractive returns through earnings if managed correctly.
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