MercadoLibre, Inc. (NASDAQ:MELI) is one of the 10 best large cap growth stocks to buy.
Following an analyst adjustment that indicated possible margin pressure related to the company’s investment strategy, shares of MercadoLibre, Inc. (NASDAQ:MELI) came under scrutiny. On March 2, 2026, Morgan Stanley maintained its Overweight rating, while reducing its price target on MercadoLibre, Inc. (NASDAQ:MELI) from $2,950 to $2,800. The firm lowered its 2026 EBIT margin expectation from 11.5% to 10.1% due to an increase in spending tied to logistics and marketing, while highlighting that this boost in spending could pressure earnings. MercadoLibre, Inc. (NASDAQ:MELI)’s leadership views the spending as part of a longer-term expansion strategy despite expectations of soft near-term margins. According to CFO Martin de los Santos, e-commerce penetration in Latin America remains low, while traditional banking systems continue to underserve significant portions of the population. De los Santos believes that, instead of focusing on short-term profitability, MercadoLibre, Inc. (NASDAQ:MELI) is prioritizing investments that are lucrative enough to bolster its competitive moat and facilitate rapid expansion. MercadoLibre, Inc. (NASDAQ:MELI) is a key player in the Latin American e-commerce and fintech ecosystem and specializes in offering online marketplaces, digital payments, logistics, and financial services across Brazil, Mexico, Argentina, and other regional markets. While we acknowledge the potential of MELI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. Follow Insider Monkey on Google News.
