MELI Stock Rebounds to Start a Potential Uptrend This Week

With increasing consumer spending in the U.S on e-commerce platforms, companies are looking at potential tailwinds in the coming days. MercadoLibre (NASDAQ: MELI), an Argentina-based e-commerce company, is looking at gradual and steady growth in its share price. MELI stock was changing hands at $1,289.49 at publication time.

MercadoLibre Created Over 13K Jobs in April

The company is doing wonders in the Latin American region, beating the likes of retail giant Amazon (NASDAQ: AMZN) there. It generated over $160 Million in Brazil and $10 Billion globally last year. According to Bloomberg, the company announced a hiring spree in April 2023, creating 13,000 jobs. The news came amidst several blue chip companies laying off their employees. Data shows that 2023 has already seen more layoffs than the last year.

Previous quarter earnings show MercadoLibre in a constructive scenario with the company beating earnings per share (EPS) estimates by 42% at $3.97 and revenue estimates by $150 Million. Additionally, the result was better than the Q4 2022 report when the retail firm generated $3.25 in EPS.

MELI Stock Price Analysis

MELI stock surged during the year’s beginning and rose alongside a tender momentum since February 2023. An elliott wave pattern is visible during the month with a correction stretching to March. Another wave in making shows a correction in the current trend. The price is holding support near $1,285 and a resistance level around $1,365.

A rising moving average convergence divergence (MACD) is trying to lose the sellers zone, potential buyers may appear in upcoming days. However, aroon down is currently dominating aroon up, indicating sellers’ dominance is active in the market. A rising wedge shows MELI stock price having a breakdown, aligning with MACD signals.

According to Forbes, consumer spending across the U.S. is affected by multiple factors including rising interest rates, a slowdown owing to the Covid-19 pandemic, rising cost of living and more. However, E-commerce business boomed during the peak of the pandemic. Consumers preferred online shopping during lockdowns across the globe while routine outdoor activities came to a grinding halt.

Free website builders have boosted e-commerce lately, as today, it is easier than every for businesses and individuals to create a site. Artificial Intelligence is a big yes for them considering the technology has evolved to a stage where certain apps can provide ready-made sophisticated codes with just a few simple written commands.

Research shows around one-fifth of the global population will shop online by 2026. E-commerce companies can leverage the latest technologies like the metaverse to set up virtual shops to increase their user base.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing