Morgan Stanley is revisiting MercadoLibre ( MELI ) amid higher logistics and marketing costs

MercadoLibre, Inc. (NASDAQ: MELI ) is one of them 10 Best Large Cap Growth Stocks to Buy.

After an analyst correction indicating potential margin pressure related to the company’s investment strategy, MercadoLibre, Inc. (NASDAQ: MELI ) shares came under scrutiny. On March 2, 2026, Morgan Stanley maintained its Overweight rating, while MercadoLibre, Inc. (NASDAQ: MELI ) lowered its price target to $2,800 from $2,950. The company lowered its 2026 EBIT margin expectation to 10.1% from 11.5% due to increased costs associated with logistics and marketing, while indicating that this growth in costs could pressure earnings. MercadoLibre, Inc. (NASDAQ: MELI ) management views spending as part of a long-term growth strategy despite expectations of softer near-term conditions. According to CFO Martín de los Santos, e-commerce penetration in Latin America remains low, while traditional banking systems continue to undercut a significant portion of the population. De los Santos believes that instead of focusing on short-term profits, MercadoLibre Inc. (NASDAQ: MELI) prioritizes investments that are profitable enough to strengthen competitive foods and facilitate rapid expansion. MercadoLibre, Inc. (NASDAQ: MELI) is a key player in the Latin American e-commerce and fintech ecosystem and specializes in providing online marketplaces, digital payments, logistics, and financial services in Brazil, Mexico, Argentina and other regional markets. While we acknowledge MELI’s potential as an investment, we believe some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks. Read more: 33 stocks that should double in 3 years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow the inside port on Google News.