The competitive scenario in electronic commerce, or e-commerce, remains fierce. For Mercado Livre (BDR: ), this dispute is not just a dynamic in the sector, but the center of its investment thesis.
According to analysts at XP Investimentos, the company continues to stand out as the main and most active e-commerce platform — but its competitors are not far behind.
The house maintained its buy recommendation for the company, but reduced the target price for the end of 2026, going to US$2,000 against US$2,200 before.
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For XP, Mercado Livre continues to make the correct strategic investments to maintain its leadership in Brazil.
Even so, and what justifies the reduction in the target price, the mismatch between short-term investment and long-term profit and loss (P&L) gains, combined with limited interest in emerging markets, puts the stock to test. Even though it may have good results, analysts prefer to wait and see.
Strategies during the World Cup
In a competitive mapping in e-commerce, XP analyzed the most recent strategies of the main virtual commerce companies, in particular, related to the World Cup and recent changes in Brazil.
Mercado Livre has combined the usual double date campaigns with sponsorships, promotions and new features related to the World Cup. Sponsorships include, for example, CazéTV, with coupons and promotions during game broadcasts.
At the same time, Amazon (BDR: ) also follows a similar approach — and just as intense. Sponsored by the Brazilian National Team and TV Globo, with coupons and prizes related to the competition and benefit program.
Shopee (BDR: ) and TikTok, in turn, are taking more rational strategies. According to the mapping, both companies have been betting on more limited activations for the World Cup.
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