11:34 AM EDT, 08/05/2025 (MT Newswires) -- MercadoLibre ( MELI ) delivered quarterly results with strong top line growth, but operating income and margins were below expectations, Wedbush said in a note to clients Tuesday.

The company's Q2 operating income of $825 million with a 12.2% margin missed consensus, pressured by factors like one-time marketing campaigns and high ad spend to back user acquisition in its marketplace and fintech segments, the investment firm said.

Adding to the pressure is the implementation in Brazil of a lower free shipping threshold on top of lower shipping charges for sellers of lower-ASP items, according to the note.

However, Wedbush said MercadoLibre's ( MELI ) risk/reward remains attractive.

"We continue to see multiple levers of sustainable growth and margin expansion, supported by ongoing improvements in logistics and within the fulfillment network, rising advertising penetration of GMV, and strong credit product adoption," analysts wrote.

Wedbush kept MercadoLibre's ( MELI ) outperform rating, but lowered its price target to $2,700 from $2,800.

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