JPMorgan Lowers MercadoLibre Inc. (MELI) Price Target amid Competition Pressure

Core Viewpoint - MercadoLibre Inc. is facing increased competitive pressures in Brazil, particularly from Amazon and Shopee, which may impact its earnings in the upcoming quarter [1][3][4]. Group 1: Competitive Environment - Amazon has intensified its operations in Brazil by establishing new logistics facilities and waiving Fulfillment by Amazon (FBA) fees to compete with MercadoLibre [3]. - The competitive landscape is expected to lead to higher costs for MercadoLibre in the coming years, according to JPMorgan analysts [4]. Group 2: Financial Projections - For Q3, MercadoLibre is projected to deliver $7.44 billion in revenue, which is 3% above consensus estimates [5]. - However, EBIT is forecasted to be $750 million, below the consensus estimate of $811 million [5]. - Earnings are expected to average $477 million, a decrease from the previously expected $551 million [5]. Group 3: Company Overview - MercadoLibre Inc. operates as a technology company in Latin America, providing e-commerce, fintech, and logistics solutions [6]. - The company runs a large online marketplace and offers a payment platform, Mercado Pago, facilitating various transactions and financial services [6].