Track market-moving stories before they get noisy

Groupe la Francaise cut its stake in shares of MercadoLibre, Inc. (NASDAQ:MELI – Free Report) by 27.1% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 11,892 shares of the company’s stock after selling 4,413 shares during the quarter. Groupe la Francaise’s holdings in MercadoLibre were worth $20,194,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also bought and sold shares of the company. California State Teachers Retirement System raised its stake in shares of MercadoLibre by 176,119.7% during the second quarter. California State Teachers Retirement System now owns 119,862,892 shares of the company’s stock valued at $203,454,074,000 after acquiring an additional 119,794,873 shares during the last quarter. BlackRock Inc. bought a new stake in shares of MercadoLibre in the 2nd quarter worth approximately $2,246,015,000. Jupiter Topco LLC purchased a new position in shares of MercadoLibre during the second quarter valued at approximately $917,123,000. Linonia Partnership LP lifted its stake in MercadoLibre by 325.1% in the second quarter. Linonia Partnership LP now owns 553,788 shares of the company’s stock worth $939,994,000 after acquiring an additional 423,527 shares during the period. Finally, Capital Research Global Investors lifted its stake in MercadoLibre by 22.5% in the fourth quarter. Capital Research Global Investors now owns 2,225,031 shares of the company’s stock worth $4,481,812,000 after acquiring an additional 408,939 shares during the period. 87.62% of the stock is owned by hedge funds and other institutional investors.

MercadoLibre Stock Performance Shares of MELI stock opened at $1,978.36 on Monday. The company has a quick ratio of 1.10, a current ratio of 1.12 and a debt-to-equity ratio of 0.53. The company has a 50 day moving average price of $1,859.43 and a 200-day moving average price of $1,769.45. MercadoLibre, Inc. has a 52 week low of $1,495.00 and a 52 week high of $2,548.50. The firm has a market capitalization of $100.30 billion, a PE ratio of 53.80, a P/E/G ratio of 1.36 and a beta of 1.31.

MercadoLibre (NASDAQ:MELI – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $9.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $8.65 by $0.54. The company had revenue of $10.17 billion for the quarter, compared to the consensus estimate of $9.79 billion. MercadoLibre had a net margin of 5.30% and a return on equity of 26.54%. The firm’s revenue was up 49.8% compared to the same quarter last year. During the same quarter last year, the firm posted $10.31 earnings per share. As a group, equities research analysts expect that MercadoLibre, Inc. will post 39.11 earnings per share for the current year. Analyst Ratings Changes Several analysts have weighed in on MELI shares. Barclays cut their price objective on MercadoLibre from $2,500.00 to $2,300.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. UBS Group decreased their price objective on MercadoLibre from $2,050.00 to $1,750.00 and set a “neutral” rating for the company in a report on Wednesday, May 13th. The Goldman Sachs Group set a $2,100.00 target price on shares of MercadoLibre in a report on Wednesday, May 13th. JPMorgan Chase & Co. lifted their price target on shares of MercadoLibre from $1,900.00 to $2,150.00 and gave the company a “neutral” rating in a research report on Tuesday, August 11th. Finally, BTIG Research restated a “buy” rating and issued a $2,150.00 price objective on shares of MercadoLibre in a report on Thursday. Eleven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $2,272.00.

Read Our Latest Analysis on MELI

MercadoLibre Company Profile (Free Report)

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.

Featured Articles Five stocks we like better than MercadoLibre AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains

Receive News & Ratings for MercadoLibre Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MercadoLibre and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Mercado Pago users jumped 30% to 88 million as MercadoLibre expanded its fintech reach across Latin America.Mercado Pago's AUM surged 68% to $23.2 billion, while its credit portfolio climbed 75% to $16.4 billion.MELI's payment volume jumped 56% to $101 billion, while the 15-90-day NPL ratio held near historic lows at 7%. MercadoLibre, Inc.’s (MELI - Free Report) fintech segment, Mercado Pago, is rapidly solidifying its position as Latin America’s leading financial services platform. The company’s second-quarter 2026 performance demonstrates how its integrated digital finance ecosystem is capturing market share, expanding daily user engagement and driving massive payment volumes across key regional markets.

During the quarter, Mercado Pago’s Monthly Active Users surged 30% year over year to 88 million, with Brazil and Mexico growing 38% and 45%, respectively. The company also cited market-leading NPS in Brazil, Mexico, Argentina and Chile, suggesting that growth is being accompanied by strong user satisfaction.

The platform is increasingly deepening its role in users’ financial lives, as reflected in Assets Under Management, which jumped 68% year over year to $23.2 billion, while AUM per user climbed 29% to $264. Consumer and credit-card exposure per user also increased, showing stronger engagement with Mercado Pago beyond everyday payments.

Mercado Pago’s credit portfolio expanded 75% year over year to $16.4 billion. Within the portfolio, credit-card balances surged 91.3% to about $7.7 billion and accounted for 47% of total credit exposure, up from 43% a year earlier. MercadoLibre issued 2.6 million new cards during the quarter compared with 1.6 million a year ago.

This rapid credit expansion occurred alongside stable asset quality, with the 15-90-day NPL ratio remaining near historic lows at 7%. Payment processing also maintained powerful momentum, as Total Payment Volume (“TPV”) jumped 56% year over year to $101 billion, while acquiring TPV reached $64.1 billion.

The strategic synergy between marketplace activity and financial solutions has made cardholders two to three times more likely to remain ecosystemic users. Driven by accelerating card issuance, remunerated accounts and expanding merchant networks, Mercado Pago is strengthening its position as one of Latin America’s leading fintech platforms.

How Does MercadoLibre Stack Up Against Its Industry?MercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares gain 22.7% over the past three months compared with the industry’s 5.9% rise. While Amazon shares have climbed 5.4%, Sea Limited has rallied 32.6% in the aforementioned period.
 

Image Source: Zacks Investment Research

What Does MercadoLibre's Current Valuation Suggest?From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio is 39.01, higher than the industry average of 21.34. The stock is also trading above its 12-month median level of 34.46.

MercadoLibre is trading at a premium to Amazon (forward 12-month P/E of 22.76) and Sea Limited (22.82).

Image Source: Zacks Investment Research

What Do Earnings Estimates Signal for MercadoLibre?The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales implies year-over-year growth of 44.6%, while the consensus estimate for earnings per share suggests a decline of 0.7%. For the next fiscal year, the consensus estimate indicates a 28.9% rise in sales and 43.3% growth in earnings.

Over the past 30 days, the Zacks Consensus Estimate for earnings per share has declined by $1.89 to $39.11 for the current fiscal year and by $3.13 to $56.05 for the next fiscal year.

Image Source: Zacks Investment Research

MELI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MercadoLibre (MELI -0.77%), the largest e-commerce company in Latin America, went public 19 years ago. A $10,000 investment in its IPO would be worth over $1 million today.

From 2007 to 2025, its revenue surged from $85 million to $28.9 billion. That growth was driven by its expansion from a consumer-to-consumer marketplace into an integrated regional e-commerce, fulfillment, and fintech ecosystem across Latin America. Let's see how MercadoLibre built that infrastructure, and why it makes it a great stock to buy and hold forever.

Image source: Getty Images.

How did MercadoLibre expand and evolve? MercadoLibre was founded in 1999 and initially expanded in Brazil, Mexico, Uruguay, and Venezuela. In 2001, eBay (EBAY -0.79%) invested in the fledgling company and helped it scale its marketplace with technological upgrades. In 2003, it launched Mercado Pago, a digital wallet for facilitating transactions on its marketplace.

In 2006, MercadoLibre expanded into Central America. In 2007, it became the first Latin American tech company to complete an IPO on NASDAQ. A year later, it acquired its rival DeRemate to consolidate its leading position in Latin America.

Premium Feature

Moneyball Superscore

85/100

Today's Change

(

-0.77

%) $

-15.53

Current Price

$

1,991.06

In 2012, it launched MercadoShops, which enabled smaller businesses to build customized, stand-alone e-commerce storefronts. In 2013, it launched Mercado Envíos, its logistics platform that standardized shipping rates and delivery times.

In 2016 and 2017, it expanded Mercado Pago to off-platform retailers through QR code point-of-sale (POS) systems and mobile wallets for brick-and-mortar transactions. It also launched Mercado Crédito, which leveraged its marketplace transaction data to approve loans for sellers and credit lines for buyers. That expansion transformed its digital payments platform into a diversified fintech business.

In 2019, it opened its first fully owned fulfillment centers across Brazil, Mexico, and Argentina to support its logistics network. That expansion made it difficult for overseas challengers such as Amazon (AMZN +1.54%) to enter the market.

Over the following six years, MercadoLibre launched its own dedicated cargo fleet (Meli Air) and secured regional banking licenses, enabling Mercado Pago to offer its own savings accounts, credit cards, and investment services. That expansion -- which it's reinforcing with multi-billion dollar capital investments in Brazil, Mexico, and Argentina -- will further widen its moat and solidify its dominance of the e-commerce and fintech markets.

Why will that infrastructure support its future growth? MercadoLibre ended its latest quarter with 89.3 million unique active buyers. That represented 26% growth from a year earlier, but it hasn't saturated the market yet.

According to Market Data Forecast, the Latin American e-commerce market could grow at a 10.85% CAGR from 2026 to 2034 as more people use smartphones and digital payments. That's why MercadoLibre -- which is well-poised to profit from that boom -- is still one of the few stocks in my portfolio that I'd consider a "forever" investment.

Netflix (NFLX +1.83%), MercadoLibre (MELI +1.59%), and Tesla (TSLA -0.78%) are having a challenging year. The three stocks are trading 14%, 3%, and 21% lower, respectively, in 2026. They are all trailing the otherwise rising general market.

The good news is that all three companies are still growing, even as their share prices are shrinking. They are very different businesses with strong brands and sticky customer loyalty. All three may be market laggards lately, but let's take a closer look at all of them before I tell you the one that I would buy in September.

Image source: Getty Images.

Have you streamed through all five seasons of Stranger Things? Investors have been experiencing "The Upside Down" in just the last three quarters. The same company that posted its strongest revenue growth in four years in the fourth quarter of last year now finds itself bracing for its weakest top-line growth in the current quarter.

Netflix stock has responded to the deceleration, losing more than a third of its value since peaking last summer. The global platform continues to grow, now with roughly 325 million subscribers worldwide. I say "roughly" because Netflix stopped offering up quarterly subscriber numbers after topping 300 million at the end of 2024.

Premium Feature

Moneyball Superscore

79/100

Today's Change

(

1.83

%) $

1.48

Current Price

$

82.29

The valuation looks compelling, not a surprise when a stock slides for a growing -- albeit, slowing -- business. Revenue growth has decelerated from 18% to the 11.7% Netflix is targeting for the quarter ending later this month. It's still double-digit growth, but that's not even the best part.

The bottom line at Netflix has grown about twice as fast as revenue over the last three quarters. The stock that has historically commanded a chunky premium to the market is now trading at a reasonable 25 times trailing earnings and a compelling 21 times next year's profit target.

Premium Feature

Moneyball Superscore

85/100

Today's Change

(

1.59

%) $

31.25

Current Price

$

1,994.74

2. MercadoLibre The resiliency of the Latin American e-commerce and fintech markets is worth celebrating. Despite political instability, pockets of hyperinflation, and class warfare challenges, folks continue to spend money. MercadoLibre is the obvious beneficiary.

The pioneer in e-commerce and online payments has become a juggernaut. Top-line growth has been consistently robust. Net revenue has topped 30% for 30 consecutive quarters, with the 50% jump it posted this summer clocking in as its strongest top-line jump in four years.

The bottom line is another story. Initial loan-loss provisions as it expands into the region's credit markets with loans and credit card offerings are weighing on near-term profits. Zooming in on its largest market, Brazil, MercadoLibre has had to subsidize free shipping for smaller orders to stay ahead of cost-cutting international competitors.

This all comes together for a quarterly cadence of steady top-line beats and many bottom-line whiffs, but that's a sacrifice investors should be willing to make. With the Latin American market still early in the e-commerce and fintech migration compared to the U.S., Europe, and most Asian markets, grabbing market share is more important than boosting its immediate profitability.

Premium Feature

Moneyball Superscore

65/100

Today's Change

(

-0.78

%) $

-2.77

Current Price

$

353.32

3. Tesla This brings us to Tesla stock. It's the world's most valuable automaker by market cap, but it's naturally more than just a maker of popular electric vehicles. It has the largest network of proprietary charging stations. It's a leader in autonomous driving, and its next market to conquer will be home robotics.

Despite posting its strongest revenue growth in three years in its latest quarter, the impressive 26% year-over-year jump was offset by the way Tesla got there. Heavy promotional activity in Europe to clear out excess inventory while also capitalizing on the surge in gas prices was good for sales but rough on margins. Investments in humanoid robotics and other emerging tech also took a larger bite than expected. Free cash flow turned negative, and profitability was cut in half.

Improving its FSD (full self-driving) platform, rolling out its fleet of robotaxis, and making a big push into home robots should pay off in time. For now, investors are moving to the sidelines until there is more visibility to justify its sizable valuation.

A September to remember There's a strong bullish argument to be made for all three companies, and I personally own two of them. Tesla is the one I don't own right now. I'm not likely to be a buyer in September. Despite suffering the largest decline of the three through the first eight months of 2026, the valuation remains rich until it can prove it can corner the market in consumer robotics.

Netflix offers the most compelling earnings-based valuation, but it's also growing the slowest. Analysts see revenue rising a modest 45% through the next four years, compared to doubling for Tesla and rising 145% for MercadoLibre. The recent trend of decelerating revenue growth could get in the way of its near-term momentum.

This leaves MercadoLibre as the stock I am most likely to buy in September, adding to my existing position. It's making near-term margin sacrifices like Tesla, but the payoff should come sooner with less uncertainty. Trading at a historically reasonable 35 times next year's profit target, given its heady historical growth rate, makes it the stock to buy this month.

Mercado Libre (MELI -1.53%) is sometimes called the Amazon (AMZN -2.50%) of Latin America.

*Stock prices used were the afternoon prices of Aug. 29, 2026. The video was published on Aug. 31, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Key Takeaways MercadoLibre's Brazil items sold jumped 56% year over year in Q2 2026, while FX-neutral GMV rose 39%.Brazil conversion rose 1.1 points, while items sold per unique active buyer climbed 19% year over year.MercadoLibre's Brazilian buyers shopping across at least three categories monthly rose 10 percentage points. MercadoLibre, Inc.’s (MELI - Free Report) decision to lower its free-shipping threshold in Brazil continues to yield meaningful operational benefits, driving sustained momentum across its marketplace. One year after the change, the initiative has produced a durable shift in buyer engagement, increasing conversion, purchase frequency and cross-category shopping, while unit economics continue to improve.

The company reported that items sold in Brazil rose 56% year over year in the second quarter of 2026 compared with 26% growth a year earlier, while FX-neutral GMV increased 39%.  MercadoLibre also added nearly 19 million unique active buyers globally, with fastest growth in Brazil, where management highlighted the compounding impact of the lower threshold.

Rather than providing a temporary boost, the reduced threshold triggered a lasting step-change in conversion rates, which expanded by 1.1 percentage points year over year during the quarter. Daily active users have also continued to grow faster than monthly active users in every quarter since MercadoLibre lowered its free-shipping threshold in June 2025. Items sold per unique active buyer in Brazil climbed 19% year over year, leading the company's overall consolidated 14% increase.

The share of Brazilian buyers purchasing across three or more categories monthly expanded by 10 percentage points over the past year. Newer buyer cohorts are also purchasing more items across more categories and showing higher retention than earlier cohorts. Ecosystemic user growth in Brazil accelerated to almost 50% year over year in the quarter, up from 35% before the shipping-threshold change.

MercadoLibre said that free and slow shipments are now variable contribution-positive across half of the average selling price ranges between R$19 and R$79, as scale, technology and unused logistics capacity reduce costs. MercadoLibre still faced higher shipping costs in the quarter, some of which it absorbed, but the evidence so far suggests the free-shipping move has moved beyond a short-lived promotional lift and is supporting more frequent, broader shopping behavior in Brazil.

How Does MercadoLibre Stack Up Against Its Industry?MercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares gain 13.6% over the past three months compared with the industry’s 3.1% rise. While Amazon shares have climbed 2%, Sea Limited has rallied 25.4% in the aforementioned period.
 

Image Source: Zacks Investment Research

What Does MercadoLibre's Current Valuation Suggest?From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio is 39.02, higher than the industry average of 22.13. The stock is also trading above its 12-month median level of 34.46.

MercadoLibre is trading at a premium to Amazon (forward 12-month P/E of 23.35) and Sea Limited (24.46).

Image Source: Zacks Investment Research

What Do Earnings Estimates Signal for MercadoLibre?The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales implies year-over-year growth of 44.6%, while the consensus estimate for earnings per share suggests a decline of 0.7%. For the next fiscal year, the consensus estimate indicates a 28.9% rise in sales and 43.3% growth in earnings.

Over the past 30 days, the Zacks Consensus Estimate for earnings per share has declined by $1.89 to $39.11 for the current fiscal year and by $3.13 to $56.05 for the next fiscal year.

Image Source: Zacks Investment Research

MELI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arthedge Capital Management LLC purchased a new stake in MercadoLibre, Inc. (NASDAQ:MELI – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 5,372 shares of the company’s stock, valued at approximately $9,118,379. MercadoLibre comprises about 0.0% of Arthedge Capital Management LLC’s investment portfolio, making the stock its 8th biggest position.

Several other institutional investors and hedge funds have also recently bought and sold shares of the business. Brown Advisory Inc. increased its position in MercadoLibre by 2,494.9% during the fourth quarter. Brown Advisory Inc. now owns 15,362 shares of the company’s stock valued at $30,943,000 after acquiring an additional 14,770 shares during the last quarter. Thompson Siegel & Walmsley LLC increased its position in MercadoLibre by 238.3% during the fourth quarter. Thompson Siegel & Walmsley LLC now owns 2,030 shares of the company’s stock valued at $4,089,000 after acquiring an additional 1,430 shares during the last quarter. TIAA Trust National Association increased its position in MercadoLibre by 10.9% during the fourth quarter. TIAA Trust National Association now owns 11,011 shares of the company’s stock valued at $22,179,000 after acquiring an additional 1,083 shares during the last quarter. Deepwater Asset Management LLC increased its position in MercadoLibre by 38.6% during the fourth quarter. Deepwater Asset Management LLC now owns 7,765 shares of the company’s stock valued at $15,641,000 after acquiring an additional 2,164 shares during the last quarter. Finally, Deutsche Bank AG bought a new position in MercadoLibre during the second quarter valued at $279,445,000. Hedge funds and other institutional investors own 87.62% of the company’s stock.

Wall Street Analysts Forecast Growth MELI has been the topic of a number of analyst reports. Zacks Research upgraded shares of MercadoLibre from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. The Goldman Sachs Group set a $2,100.00 price target on shares of MercadoLibre in a report on Wednesday, May 13th. Scotiabank cut their price target on shares of MercadoLibre from $3,500.00 to $2,800.00 and set a “sector outperform” rating on the stock in a report on Thursday, May 7th. Cantor Fitzgerald upped their price target on shares of MercadoLibre from $2,150.00 to $2,300.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Finally, Barclays cut their price target on shares of MercadoLibre from $2,500.00 to $2,300.00 and set an “overweight” rating on the stock in a report on Monday, May 11th. Eleven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $2,272.00.

Get Our Latest Stock Analysis on MELI MercadoLibre Trading Up 1.8% NASDAQ MELI opened at $1,966.25 on Friday. The company’s 50-day moving average price is $1,824.45 and its 200-day moving average price is $1,772.36. The company has a current ratio of 1.12, a quick ratio of 1.10 and a debt-to-equity ratio of 0.53. The stock has a market cap of $99.69 billion, a PE ratio of 53.47, a PEG ratio of 1.32 and a beta of 1.34. MercadoLibre, Inc. has a 12 month low of $1,495.00 and a 12 month high of $2,548.50.

MercadoLibre (NASDAQ:MELI – Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $9.19 earnings per share for the quarter, topping analysts’ consensus estimates of $8.65 by $0.54. MercadoLibre had a net margin of 5.30% and a return on equity of 26.54%. The company had revenue of $10.17 billion during the quarter, compared to analyst estimates of $9.79 billion. During the same period in the prior year, the firm earned $10.31 earnings per share. The firm’s revenue for the quarter was up 49.8% compared to the same quarter last year. Equities research analysts forecast that MercadoLibre, Inc. will post 39.11 earnings per share for the current year.

MercadoLibre Company Profile (Free Report)

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.

Featured Stories Five stocks we like better than MercadoLibre 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop?

Receive News & Ratings for MercadoLibre Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MercadoLibre and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways MELI shares rose 14% in three months, backed by strength in commerce, fintech, ads and logistics. Ecosystemic users grew 37%, while Mercado Pago monthly active users reached 88 million in Q2. MELI trades at 38.42 times forward earnings as investments pressure margins and EPS estimates fall. MercadoLibre, Inc.’s (MELI - Free Report) shares have gained about 14% over the past three months, outperforming the broader market. During the same period, the industry declined 1.1% and the Zacks Retail-Wholesale sector fell 1.7%, while the S&P 500 rose just 0.3%.

Image Source: Zacks Investment Research

Over the same period, MercadoLibre delivered a stronger share price performance than Amazon.com, Inc. (AMZN - Free Report) , while trailing Sea Limited (SE - Free Report) . AMZN shares slid 5.3%, while Sea Limited posted a 30.7% rally.

MELI’s run reflects confidence in the company’s ability to deepen its leadership in Latin American e-commerce and financial services. Its second-quarter 2026 results reinforced that view, with healthy marketplace engagement, expanding fintech adoption and continued progress across advertising, credit and logistics.

What is Driving MercadoLibre’s Growth?MercadoLibre’s key strength is the breadth of its ecosystem, which combines marketplace, payments, credit, advertising and logistics. The company is benefiting from deeper engagement across these businesses rather than relying only on e-commerce growth. Users active across both commerce and fintech generally transact more frequently and use more products. Ecosystemic users grew 37% year over year in the second quarter, highlighting the strength of this model.

Commerce remains the core growth engine. MercadoLibre continues to improve selection, delivery speed, pricing and financing options. In Brazil, the lower free-shipping threshold has encouraged customers to buy more frequently and across more categories, while supporting better conversion and retention. Management indicated that these changes are driving more lasting shifts in shopping behavior.

The company is also expanding assortment through first-party inventory and cross-border trade. Higher use of its China fulfillment center has helped improve delivery times and reduce cancellations, strengthening the overall customer experience.

Mercado Pago is another major growth driver. The fintech platform is attracting more users as customers increasingly use it for payments, savings and credit. Monthly active users reached 88 million in the second quarter, while assets under management continued to rise. The credit business is also expanding, supported by a greater focus on lower-risk users and improved underwriting.

Advertising is becoming increasingly important as well. MercadoLibre is using AI to improve search, product discovery and ad placement. Management noted that its AI-powered search tools are already delivering higher conversion and advertising gains that more than cover the related technology costs.

Near-Term Hurdles for MercadoLibreMercadoLibre continues to invest heavily in free shipping, seller incentives, first-party inventory, cross-border trade and financial services. These initiatives are designed to strengthen its ecosystem but are weighing on margins. In the second quarter, operating margin was 6.7%, down notably from the year-ago period.

Commerce investments remain a key pressure point. In Brazil, lower seller take rates and PIX-related discounts are helping improve pricing and marketplace selection but are limiting near-term profitability. Higher energy expenses are also increasing logistics costs.

Fintech expansion requires significant investment as well. MercadoLibre is rapidly growing its credit-card business, while new card cohorts typically take 12-18 months to reach NIMAL breakeven. Although credit quality remains healthy, faster issuance can pressure profitability in the short run. Mexico is another concern, as tax changes, softer economic conditions and weaker consumption are affecting commerce growth despite continued market share gains.

MercadoLibre’s Valuation Looks StretchedMELI currently trades at a forward 12-month price-to-earnings (P/E) ratio of 38.42, above the industry ratio of 21.97 and its own one-year median of 34.46. The stock also carries a sizable premium to Amazon at 22.43 and Sea Limited at 24.31.

Image Source: Zacks Investment Research

This higher valuation reflects MercadoLibre’s strong growth profile and the scale of its commerce-fintech ecosystem. However, the premium also raises the bar for execution. Following the recent share price rally, any moderation in growth or continued pressure on margins could limit further upside.

MELI Earnings Estimates Trend LowerEstimate revisions warrant some caution. Over the past 30 days, the Zacks Consensus Estimate for MELI’s current-year earnings per share (EPS) has moved down to $39.11, while the estimate for next year has declined to $56.05.

Image Source: Zacks Investment Research

The current-year consensus implies a 0.7% decline from the year-ago level, underscoring how elevated investment spending is weighing on near-term earnings despite strong operating growth. However, the consensus estimate for the next year still indicates a substantial 43.3% increase in EPS, suggesting expectations for stronger earnings leverage.

How Should Investors Play MercadoLibre Stock?MercadoLibre remains well-positioned, supported by strong commerce engagement, rising Mercado Pago adoption and continued expansion across credit, advertising and logistics. At the same time, heavy investments are keeping near-term profitability under pressure. The stock’s premium valuation also leaves less room for execution missteps after its recent rally. MELI’s long-term growth story remains attractive, but current valuation and margin pressures argue against chasing the stock aggressively. Existing investors may hold the stock, while new investors could wait for a more favorable entry point.

MELI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Choosing between a global titan and a regional powerhouse can define a portfolio. Amazon.com (AMZN +3.97%) and MercadoLibre (MELI +1.84%) represent two different paths to e-commerce success.

Amazon serves as the ultimate everything store with a massive cloud infrastructure business. MercadoLibre dominates the Latin American market by blending digital retail with a robust payments ecosystem. Both companies are often compared because they utilize logistics and financial services to lock customers into their platforms.

The case for Amazon.comAmazon operates as a global leader among retail stocks, using its massive fulfillment network to serve hundreds of millions of unique products. The company generates revenue from its core e-commerce site, third-party seller services, and a high-margin advertising business. Its technology division, Amazon Web Services (AWS), provides cloud computing for enterprises and developers, serving as a significant driver of overall profitability.

In its latest annual report, filed for the 2025 fiscal year (FY), revenue reached $716.9 billion, representing a growth rate of 12.4% compared to the previous year. This expansion was accompanied by net income of $77.7 billion, resulting in a net margin of 10.8%. The increase in net margin suggests that the company is effectively balancing its heavy investments in artificial intelligence with operational discipline.

As of its December 2025 balance sheet, the debt-to-equity ratio was 0.4x. The debt-to-equity ratio, which compares total debt to shareholder equity, suggests the company maintains a conservative leverage profile. The current ratio stands at 1.1x, indicating its ability to cover short-term obligations, while free cash flow, calculated as cash flow from operations minus capital expenditures, reached $7.7 billion for the fiscal year.

The case for MercadoLibreMercadoLibre serves a broad user base across Latin America, consisting of buyers and sellers on its marketplace and users of its fintech platform, Mercado Pago. The company has built a comprehensive ecosystem that includes logistics through Mercado Envios and advertising via Mercado Ads. By providing financial services to underbanked populations, it has created a competitive advantage that is difficult for international rivals to replicate.

In FY 2025, revenue reached $28.9 billion, which represents a significant growth rate of 39.1%. The company reported net income of $2 billion for the same period, with a net margin of 6.9%. While the company has faced currency volatility in its primary markets, its ability to maintain strong top-line growth indicates resilient consumer demand for its integrated services.

As of its December 2025 balance sheet, the debt-to-equity ratio was 1.7x. Since this ratio measures total debt against shareholder equity, a higher number suggests a greater reliance on borrowed capital. The current ratio stands at 1.2x, while free cash flow reached $10.8 billion for the fiscal year ended in December.

Risk profile comparisonAmazon faces intense competition across retail and cloud industries from well-funded rivals. Regulatory scrutiny remains a major concern, as the company deals with investigations regarding its marketplace operations and labor practices. Additionally, the business carries risks related to its complex fulfillment network and ongoing patent litigation involving smart home and connectivity technology, which could lead to significant legal costs.

MercadoLibre faces intense competition in its core markets from both local players and new international entrants. The company relies on third-party mobile platforms like Apple (AAPL +1.63%) for app distribution and payment processing. Other risks include economic instability in emerging markets, regulatory changes in the fintech sector, and the unpredictable nature of generative artificial intelligence outputs as the company integrates new technologies.

Valuation comparisonAmazon appears to be the more conservative play based on its lower earnings multiple, while MercadoLibre offers a lower price-to-sales multiple.

MetricAmazon.comMercadoLibreForward P/E21.6x51.1xP/S ratio3.9x3.4xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?A comparison between Amazon and MercadoLibre makes sense given they are both e-commerce powerhouses. Choosing between them depends on whether you want exposure to high-growth regional dominance or large-cap global stability and cloud diversification. My choice would be Amazon.

That said, now is a good time to invest in MercadoLibre. This year, the company enacted a deliberate compression of margins to pursue new long-term growth opportunities such as artificial intelligence. This margin decline caused a stock sell-off, resulting in a share price drop. Wall Street overreacted, given MercadoLibre continues to achieve spectacular sales growth in 2026. It achieved $10 billion in revenue for the first time in the second quarter, representing outstanding 50% year-over-year growth.

Amazon's Q2 sales rose a solid 20% year over year to $200.6 billion. But what makes the retailer a superior choice over MercadoLibre is its investments in artificial intelligence.

The company's AWS division is the world's leading cloud computing provider, making its AI offerings a natural extension of its cloud solutions. This helped AWS revenue to jump 37% year-over-year to $42.2 billion. As AI adoption continues across industries, Amazon is poised to experience further AWS growth, adding to its strong e-commerce business. And at a lower share price valuation than MercadoLibre based on the forward P/E ratio, now looks like a good time to buy.

Asset One Wealth Management LLC grew its stake in shares of MercadoLibre, Inc. (NASDAQ:MELI – Free Report) by 408.5% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 2,680 shares of the company’s stock after buying an additional 2,153 shares during the period. Asset One Wealth Management LLC’s holdings in MercadoLibre were worth $4,940,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Laurel Wealth Advisors LLC acquired a new position in MercadoLibre in the fourth quarter valued at $26,000. Transamerica Financial Advisors LLC purchased a new stake in MercadoLibre during the fourth quarter valued at about $26,000. Purpose Unlimited Inc. acquired a new stake in MercadoLibre during the fourth quarter worth about $28,000. Darwin Wealth Management LLC acquired a new stake in MercadoLibre during the second quarter worth about $29,000. Finally, Curio Wealth LLC purchased a new position in shares of MercadoLibre in the 4th quarter worth about $30,000. 87.62% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets Several equities analysts have recently weighed in on MELI shares. Citigroup lifted their price objective on MercadoLibre from $1,950.00 to $2,000.00 and gave the company a “neutral” rating in a research note on Wednesday, July 15th. UBS Group dropped their target price on shares of MercadoLibre from $2,050.00 to $1,750.00 and set a “neutral” rating for the company in a research report on Wednesday, May 13th. Raymond James Financial set a $2,000.00 price target on shares of MercadoLibre in a report on Friday, May 8th. Morgan Stanley reduced their price target on shares of MercadoLibre from $2,600.00 to $2,450.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of MercadoLibre in a research note on Thursday, July 2nd. Eleven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, MercadoLibre currently has an average rating of “Moderate Buy” and an average target price of $2,272.00.

View Our Latest Analysis on MELI MercadoLibre Price Performance MELI stock opened at $1,922.73 on Monday. The firm has a market cap of $97.48 billion, a P/E ratio of 52.29, a price-to-earnings-growth ratio of 1.32 and a beta of 1.34. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.10 and a current ratio of 1.12. MercadoLibre, Inc. has a 1 year low of $1,495.00 and a 1 year high of $2,548.50. The stock has a 50-day simple moving average of $1,793.05 and a 200-day simple moving average of $1,773.33.

MercadoLibre (NASDAQ:MELI – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $9.19 EPS for the quarter, topping the consensus estimate of $8.65 by $0.54. The firm had revenue of $10.17 billion for the quarter, compared to analyst estimates of $9.79 billion. MercadoLibre had a return on equity of 26.54% and a net margin of 5.30%.MercadoLibre’s revenue for the quarter was up 49.8% on a year-over-year basis. During the same period in the previous year, the company posted $10.31 EPS. On average, equities analysts predict that MercadoLibre, Inc. will post 39.11 earnings per share for the current fiscal year.

About MercadoLibre (Free Report)

MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.

Featured Stories Five stocks we like better than MercadoLibre VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over

Receive News & Ratings for MercadoLibre Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MercadoLibre and related companies with MarketBeat.com's FREE daily email newsletter.

LOS ANGELES--(BUSINESS WIRE)---- $MELI--MELI Investors Have Opportunity to Join MercadoLibre, Inc. Fraud Investigation with SBS Law.

7.14K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MELI; AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have exposure to BTC through MSTR.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways MercadoLibre's Q2 GMV rose 44% to $21.9B, while items sold increased 45% to 795.4 million units.MercadoLibre's active buyers grew 26% to 89.3M, while Brazil's conversion rate rose 1.1 percentage points.MercadoLibre's ecosystemic users generated 70% more GMV per user than marketplace-only users. MercadoLibre, Inc. (MELI - Free Report) achieved total Gross Merchandise Volume (“GMV”) of $21.9 billion in the second quarter of 2026. This performance represents a 44% year-over-year expansion in U.S. dollar terms and 36% growth on an FX-neutral basis. Consolidated items sold rose 45% year over year to reach 795.4 million units.

A principal driver behind this sustained volume strength is the deepening level of buyer engagement across core regional markets. Unique active buyers on the marketplace expanded 26% year over year to reach 89.3 million. Items sold per unique active buyer increased 14%, driven by a 19% gain in Brazil. This elevated activity stems from structural initiatives such as the lowered free-shipping threshold introduced in Brazil, which produced a step-change in conversion rates and improved long-term user retention. Brazil’s conversion rate increased 1.1 percentage points year over year.

Regional performance contributed significantly to overall volume expansion. On an FX-neutral basis, Brazil recorded 39% year-over-year GMV growth, while Mexico registered 26% growth. In Argentina, FX-neutral GMV expanded 38% despite broader macroeconomic consumption challenges. Cross-border trade GMV posted 60% FX-neutral growth, supported by expanded fulfillment capabilities in China.

The broader ecosystem structure also reinforces marketplace activity through synergistic usage. Ecosystemic users who utilize both the marketplace platform and Mercado Pago financial services generated 70% more GMV per user than marketplace-only users.

MercadoLibre is widening selection through domestic sellers and cross-border inventory while improving the shopping proposition. This helps explain why GMV growth remains a closely watched measure for investors even when consumer conditions differ across markets.

What the Latest Metrics Say About MercadoLibreMercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares gain 12.7% over the past three months compared with the industry’s 1.1% rise. While Amazon shares have declined 1.3%, Sea Limited has rallied 35.4% in the aforementioned period.

Image Source: Zacks Investment Research

From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio is 35.94, higher than the industry average of 22.21. The stock is also trading above its 12-month median level of 34.47.

Image Source: Zacks Investment Research

MercadoLibre is trading at a premium to Amazon (forward 12-month P/E of 22.74) and Sea Limited (23.39).

 The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales implies year-over-year growth of 44.6%, while the consensus estimate for earnings suggests a decline of 0.7%. For the next fiscal year, the consensus estimate indicates a 28.9% rise in sales and 43.3% growth in earnings.

Image Source: Zacks Investment Research

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about MercadoLibre (MELI - Free Report) .

MercadoLibre currently has an average brokerage recommendation (ABR) of 1.55, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.55 approximates between Strong Buy and Buy.

Of the 19 recommendations that derive the current ABR, 13 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 68.4% and 5.3% of all recommendations.

Brokerage Recommendation Trends for MELI

Check price target & stock forecast for MercadoLibre here>>>

While the ABR calls for buying MercadoLibre, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is MELI Worth Investing In?In terms of earnings estimate revisions for MercadoLibre, the Zacks Consensus Estimate for the current year has declined 4.6% over the past month to $39.11.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for MercadoLibre. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for MercadoLibre with a grain of salt.

Key Takeaways MercadoLibre's Q2 revenues rose 50%, while operating margin fell to 6.7% amid growth investments.Brazil conversion stayed 1.1 points higher as free shipping boosted retention and purchasing activity.Active sellers rose 29%, while items sold per unique buyer climbed 14%, including 19% growth in Brazil. MercadoLibre, Inc. (MELI - Free Report) posted impressive second-quarter 2026 net revenue and financial income of $10.2 billion, representing a 50% year-over-year increase. However, operating income fell 17% to $683 million, pulling operating margin down 550 basis points to 6.7%, although it contracted only 20 basis points sequentially. Net income margin also contracted 310 basis points year over year to 4.6%. The margin pressure reflects MercadoLibre’s deliberate decision to prioritize investments in engagement, growth and scale over near-term profitability.

The clearest test of whether that sacrifice is paying off comes from Brazil. A year after MercadoLibre lowered its free-shipping threshold, conversion remained 1.1 percentage points higher year over year. New buyer cohorts are purchasing more items across more categories and showing higher retention. The economics of free shipping are also improving as scale and logistics efficiencies make more lower-priced shipments profitable.

MercadoLibre has extended this strategy through PIX discounts for buyers and lower take rates for sellers in selected categories. While these actions weigh on near-term profitability, they improved price competitiveness and helped active sellers grow 29% year over year. Meanwhile, items sold per unique buyer increased 14%, including 19% growth in Brazil.

The payoff is also visible in broader commerce activity. Gross merchandise volume increased 36% year over year on an FX-neutral basis, while items sold advanced 45%. Unique active buyers reached 89.3 million, up 26%, with Brazil showing the fastest growth as the impact of the lower free-shipping threshold continued to compound.

Deeper engagement carries economic value. Users who participate in both MercadoLibre’s marketplace and Mercado Pago generate more GMV, purchase across more categories and are substantially more profitable than users of either service alone. Management said contribution profit per ecosystemic user is multiples of that generated by marketplace-only and fintech-only users combined.

For now, the growth-for-margin trade-off is producing measurable behavioral gains. Higher conversion, purchasing frequency, retention and seller participation indicate that MercadoLibre’s investments are deepening engagement, while improving shipping economics provide early evidence that some of the initial margin pressure can ease as scale builds.

What the Latest Metrics Say About MercadoLibreMercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares gain 17% over the past three months compared with the industry’s 3.4% rise. While Amazon shares have gained 2.1%, Sea Limited has rallied 33.7% in the aforementioned period.
 

Image Source: Zacks Investment Research

From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio is 34.99, higher than the industry average of 23.23. The stock is also trading above its 12-month median level of 34.46.

MercadoLibre is trading at a premium to Amazon (forward 12-month P/E of 23.79) and Sea Limited (22.34).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales and earnings per share implies year-over-year growth of 39.7% and 3.3%, respectively. For the next fiscal year, the consensus estimate indicates a 27% rise in sales and 45.9% growth in earnings.
 

Image Source: Zacks Investment Research

In recent trading sessions, high-profile stocks like Space Exploration Technologies, known as SpaceX, have cratered, and large run-ups and massive capital expenditures (capex) cast doubt on many of the so-called "Magnificent Seven" names.

Knowing that, investors may want to seek opportunities in other industries. One place to look might be outside the U.S., specifically at Latin American e-commerce giant MercadoLibre (MELI -0.51%). Although the consumer discretionary stock may not be well known to many American investors, it offers an opportunity for growth outside of the usual names.

Image source: The Motley Fool.

Turning to MercadoLibre Investors are likely looking for an alternative, as the investment case for SpaceX may not be as clear-cut. Although its revenue rose 54% year over year in the first half of 2026, its massive losses continued to widen. This has occurred as the supply of SpaceX shares is on track to keep rising, potentially depressing the stock price.

Also, other than Nvidia, the rest of the Magnificent Seven are either tied to the beleaguered software industry or have spooked investors with massive capex.

MercadoLibre faces none of these issues. It prospered by being a first mover in the Latin American e-commerce space. This posed challenges for the developing world that Amazon did not face, and MercadoLibre responded in a way that strengthened it.

Since most of its customers were outside the financial system, the company formed Mercado Pago to offer digital payment products. Also, due to a comparative lack of fulfillment and shipping options, Mercado Envios was created to package and move merchandise more quickly.

Today's Change

(

-0.51

%) $

-9.31

Current Price

$

1,820.69

However, the state of its primary businesses may have contributed to the 29% decline in the stock price. Competitors like Amazon and others made inroads, forcing MercadoLibre to reduce its margins to bolster its competitive edge. Additionally, the expansion of Mercado Pago into lending led to more loans going bad, forcing it to incur loan losses.

Fortunately, the company's response could increase long-term growth. Lower margins make it more difficult to compete with MercadoLibre, and the company can offset lower profits by accelerating growth. Moreover, Mercado Pago responded to financial challenges by using AI to evaluate its customers' finances.

The pace of revenue growth should offer comfort to investors. In the first half of 2026, revenue of $19 billion rose 50% compared to year-ago levels. Still, the aforementioned challenges meant that the $883 million in net income in the first two quarters of 2026 fell 13% over the same period, a likely cause of the stock's struggles.

The revenue growth should become the engine of the stock's recovery. Also, assuming the company can profit from its sales and marketing spending and reduce the percentage of bad loans, MercadoLibre could soar if profit growth matches or exceeds its revenue growth.

Investing in MercadoLibre Admittedly, Latin America has a difficult business environment, and the falling net income may seem discouraging. However, MercadoLibre is a potentially attractive alternative to megacap tech stocks. The company's mitigation strategies mean its growth engines should spur rapid profit growth in the long term. That could lead to significant increases in the stock price independent of the U.S. tech industry.

MercadoLibre CFO Martin de los Santos joins 'Fast Money' to talk the company's second quarter results, growth opportunity, the state of the consumer and more.

MercadoLibre's revenue grew 50% YoY, driven by strong Commerce and Mercado Pago performance. Margins declined as MELI increased strategic investments to accelerate growth and customer acquisition. Customer retention improved through deeper integration between the Marketplace and Mercado Pago ecosystem.

Key Takeaways MercadoLibre beat Q2 earnings estimates as revenues climbed nearly 50% year over year.MELI posted 44% GMV growth and 56% Total Payment Volume growth, with fintech users reaching 88 million.MercadoLibre increased AI investment while prioritizing shipping, credit cards and cross-border trade. MercadoLibre (MELI - Free Report) reported second-quarter 2026 earnings of $9.19 per share, which beat the Zacks Consensus Estimate of $8.69 per share by 5.75% and declined 10.86% year over year from $10.31 per share in the year-ago quarter. Revenues rose 49.76% on a year-over-year basis (43% on a foreign-exchange-neutral basis) to $10.17 billion, surpassing the Zacks Consensus Estimate by 4.07%.

Commerce and fintech revenues grew 50% and 49% year over year on a reported basis, respectively. Brazil delivered foreign-exchange-neutral GMV growth of 39% year over year, Mexico posted 26% amid tax reform headwinds, and Argentina delivered 38% against a challenging consumption environment. Advertising revenues rose 62% year over year on a foreign-exchange-neutral basis, with MELI surpassing a 10% share of Latin America's digital advertising market for the first time.

MELI’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 107.32%.

MELI's Q2 in DetailBrazil: Net revenues in the second quarter reached $5,530 million (54.39% of total revenues), up 59% year over year on a reported basis, aided by currency tailwinds, credit card portfolio expansion and robust advertising uptake. On a foreign exchange neutral basis, growth was 42%.

Mexico: The market generated revenues of $2,337 million (22.98% of total revenues), increasing 55% year over year on a reported basis and 38% on a foreign exchange neutral basis. Growth continued to be tempered by the tax reform headwind flagged in the prior quarter, along with a softer macroeconomic environment.

Argentina: Net revenues in the reported quarter were $1,839 million (18.09% of total revenues), reflecting an increase of 20% year over year on a reported basis, as currency movements acted as a headwind. On a foreign exchange neutral basis, growth was 48%.

Other countries: These markets generated revenues of $463 million (4.55% of total revenues), representing growth of 63.03% on a year-over-year basis, with cross-border trade continuing to contribute meaningfully to assortment depth.

Key Metrics for MELIGross Merchandise Volume of $21.9 billion increased 44% year over year and 36% on a foreign exchange neutral basis.

The number of successful items sold was 795 million, up 44.55% year over year. Unique buyer growth was 25.35% year over year, with the number reaching 89 million. Items sold per unique active buyer reached 8.9, growing 14% year over year, led by Brazil, where the metric grew 19% year over year.

Fintech Monthly Active Users rose 29.41% year over year to 88 million. Assets Under Management grew 68% year over year to $23 billion, with AUM per user reaching $264, up 29% year over year. The credit portfolio expanded 75% year over year to $16.4 billion, with credit exposure per user in the consumer and credit card portfolios reaching $231 and $446, growing 34% and 20% year over year, respectively.

Total Payment Volume rose 56% year over year and 56% on a foreign exchange neutral basis to $101 billion. Acquiring Total Payment Volume grew 44% year over year to $64.1 billion, with foreign exchange neutral growth of 42%.

Total payment transactions increased 43.65% year over year to 5,181 million.

The credit portfolio reached $16.4 billion, growing 75% year over year. The credit card issued 2.6 million new cards in the quarter, up from 1.6 million cards a year ago. Asset quality remained solid, with the 15 to 90 day non-performing loan ratio at 7% for the total portfolio and 4.6% for the credit card specifically, both close to historic lows.

MercadoLibre’s Operating DetailsIn the second quarter, gross margin contracted approximately 468 basis points on a year-over-year basis to 40.9%, primarily reflecting pricing and supply initiatives in Brazil, higher shipping costs and increased device costs in Acquiring, particularly in Mexico.

Total operating expenses were $3,476 million, increasing 53.2% year over year. Income from operations declined 17% year over year to $683 million, with the operating margin contracting 550 basis points to 6.7%, as MELI continued to prioritize investment in free shipping, the credit card, first-party inventory, cross-border trade and user acquisition in Acquiring.

Product development expenses scaled favorably from 8.4% of revenues in the second quarter of 2025 to 7.2% in the reported quarter, reflecting productivity gains from AI adoption across the engineering organization. AI investment grew roughly $80 million year over year in the quarter, split between cost of goods sold and product development.

Net Interest Margin After Losses declined to 20.7% from 23% in the second quarter of 2025, driven primarily by a shift in mix toward the lower-spread credit card, which rose from 43% to 47% of the total portfolio. Credit card NIMAL compressed from breakeven in the year-ago quarter to negative 2.5%, reflecting the step-up in issuance rather than any deterioration in asset quality.

Balance Sheet of MELIAs of June 30, 2026, cash and cash equivalents were $3,649 million, down slightly from $3.68 billion as of March 31, 2026.

Short-term investments were $2,081 million as of June 30, 2026, compared to $1.97 billion as of March 31, 2026, an increase of 5.63%. Net debt increased to $6,425 million at the end of the quarter from $5.75 billion as of March 31, 2026, reflecting continued funding of Mercado Pago's credit operations, including $2.1 billion deployed into loan book growth during the quarter, partially offset by $560 million in fintech funding.

Total loans receivable, net of allowances, stood at $11,996 million compared to $10.74 billion as of March 31, 2026, an increase of 11.72%. Adjusted free cash flow was $214 million, improving from negative $56 million in the first quarter of 2026, even after absorbing $441 million of capital expenditure, consistent with the seasonal normalization of cash generation following the first quarter's seasonal weakness.

MELI’s Zacks Rank & Other Stocks to ConsiderCurrently, MercadoLibre carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Retail-Wholesale sector are StubHub Holdings (STUB - Free Report) , The TJX Companies  (TJX - Free Report) and Five Below (FIVE - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

StubHub Holdings is set to report second-quarter 2026 results on Aug. 12. StubHub Holdings shares have plunged 34.4% year to date.

The TJX Companies is slated to report second-quarter fiscal 2027 results on Aug. 19. Shares of The TJX Companies have returned 5.5% year to date.

Five Below is set to report second-quarter 2026 results on Aug. 26. Shares of Five Below have returned 22.7% year to date.

HomeEarnings AnalysisConsumer 

SummaryMercadoLibre delivered 50% YoY revenue growth to $10.2B, with GAAP EPS of $9.19, reinforcing my Buy rating.MELI’s margin contraction is a deliberate, strategic reinvestment into growth initiatives like free shipping, first-party inventory, and card issuance.Advertising revenue surged 73% YoY, funding user growth and enabling MELI’s push into lower-end markets, despite a 550bps margin decline.Asset quality in Mercado Pago is improving, with NIMAL recovering to 20.7% and NPL ratios at historical lows, supporting long-term profitability. Leila Melhado/iStock Editorial via Getty Images

Post-Earnings Review I recently covered MercadoLibre, Inc. (MELI) with a Buy rating, based on the fact that recent margin contraction is a willing result of management's strategy to establish a walled garden

1.99K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

MercadoLibre remains a core portfolio holding as I rotate toward international and value-oriented growth stocks. I reiterate my “Buy” rating on MELI, viewing the recent ~20% dip as a strong buying opportunity amid short-term headwinds. MELI trades at a premium (~20x adjusted EBITDA), justified by its dominant position and robust 50% y/y revenue growth in Q2.

Key Takeaways MercadoLibre beat Q2 earnings and revenue estimates while prioritizing engagement over near-term margins.Brazil's free-shipping shift lifted items per buyer 19% and improved conversion by 1.1 percentage points.AI-enhanced search lifted conversion and ad clicks as incremental revenues covered third-party model costs. MercadoLibre, Inc. (MELI - Free Report) used its second-quarter 2026 earnings call to reinforce a clear trade-off: deeper user engagement and ecosystem scale remain more important than near-term margins.

Management cited accelerating commerce, resilient credit quality and measurable AI returns as support for continuing that strategy.

MELI Keeps Investment Ahead of MarginMELI reported second-quarter earnings of $9.19 per share, beating the Zacks Consensus Estimate of $8.69. Revenues of $10.17 billion also topped the $9.77 billion consensus.

CFO Martin de los Santos said the 6.7% operating margin was broadly stable sequentially but down 550 basis points year over year. He tied the decline to investments in shipping, selection, cards, cross-border trade and MELI+.

A Goldman Sachs analyst pressed on costs. Santos said stronger credit profitability offset lower Brazil take rates, PIX discounts, chip costs, Mexico device restocking and a modest logistics drag from energy costs.

MercadoLibre Sees Brazil Behavior ShiftBrazil’s lower free-shipping threshold produced durable behavioral change one year after implementation. Items per buyer rose 19%, conversion improved 1.1 percentage points and daily active users kept outgrowing monthly active users.

CEO and president Ariel Szarfsztejn said lower seller take rates accelerated successful seller growth without creating a material additional margin burden from the new seller mix.

CFO Santos and CEO Szarfsztejn said tougher comparisons will not determine future spending. Investments will depend on engagement, market position and a clear profitability path, not preserving a specific growth rate.

MELI Holds Firm on Credit QualityFintech president Osvaldo Giménez said the credit portfolio reached $16.4 billion, up 75% year over year. The 15-to-90-day nonperforming loan ratio was 7.0% overall and 4.6% for cards, both near historical lows.

An Itaú BBA analyst asked about Brazil credit risk. Giménez said MELI was not seeing deterioration and would reduce available lines or limits if conditions changed, as it has done in prior adverse cycles.

Giménez also added that mature Brazilian card cohorts typically reach NIMAL breakeven within 12 to 18 months. Faster issuance is slowing average portfolio maturation, while early paybacks in Mexico are better than in Brazil.

MercadoLibre Treats AI as an Operating LeverSzarfsztejn said AI-enhanced search is improving conversion, item sales and advertising click-through rates. The system covers the five largest markets, and incremental commerce and ad revenues more than offset third-party model costs.

The CFO said 20,000 developers use AI and human-written code has become the exception. Code submissions rose 90% year over year, while product development expense declined as a share of revenues.

CEO Szarfsztejn called AI an accelerator for personalized discovery, smoother transactions and better underwriting. He also said 2026 is the first year in many years that the engineering team is not growing.

MELI Extends the Ecosystem FlywheelSantos said users active in both Marketplace and Mercado Pago grew 37% year over year. They generate 70% more GMV, nearly 90% more payment volume and double the assets under management of single-platform users.

Santos did not disclose their share of total users but emphasized their strategic value. He said card users are two to three times more likely to become ecosystemic, strengthening commerce and financial engagement.

Szarfsztejn highlighted cross-border trade as another driver. Cross-border GMV rose about 60%, China fulfillment-center volume increased 170% sequentially, and unit economics kept improving.

MercadoLibre Balances Growth and HeadwindsThe CFO acknowledged that Mexico commerce faced tax reform, weaker macro conditions and lower World Cup consumption. Management said the business still gained market share and retained a long-term opportunity.

Executives linked investment intensity to engagement gains, improving unit economics and defined profitability paths. Near-term margin expansion remains secondary to building the commerce-fintech ecosystem.

MELI's Zacks Rank & Style ScoresMELI currently carries a Zacks Rank #2 (Buy). Its Growth Score of A, Value Score of B and VGM Score of B fit the favorable A-or-B grades designed to complement top Zacks Rank stocks, while the Momentum Score of D marks a weaker near-term trading characteristic. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The mix favors growth and blended style attributes over momentum. The Zacks Rank can change as analysts revise earnings estimates after the just-reported results, so the current signal remains dynamic.

3.03K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

6.8.2026 14:19, MELI

Latinskoamerický e-commerce a fintech gigant MercadoLibre zveřejnil výsledky za druhý kvartál 2026. Tržby vzrostly meziročně o 50 % na 10,2 mld. USD, což byl nejrychlejší růst za čtyři roky, a překonaly odhady trhu, stejně jako provozní i čistý zisk. Ziskovost je ale dále pod tlakem. Provozní marže se meziročně propadla o 5,5 p. b. na 6,7 % a čistý zisk klesl o 11 %, protože společnost pokračuje v obrovských investicích do logistiky, cenové konkurenceschopnosti a fintechu Mercado Pago.

Výsledky společnosti MercadoLibre (MELI) za 2Q 2026   2Q 2026 Konsensus 2Q 2026 2Q 2025 Čisté tržby (mld. USD) 10,17 9,78 6,79 Čistý zisk (mld. USD) 0,47 0,45 0,52 Zisk na akcii (EPS, USD/akcie) 9,19 8,77 10,31 Výsledky za 2Q Čisté tržby vzrostly meziročně o 50 % na 10,17 mld. USD, na měnově očištěné bázi vzrostly o 43 %. Šlo o nejrychlejší tempo růstu za poslední čtyři roky a zároveň o třicátý kvartál v řadě s růstem čistých tržeb nad 30 %. Konsensus trhu činil 9,78 mld. USD.

Tržby z Commerce vzrostly o 50 % na 5,76 mld. USD (měnově očištěné +40 %). Tržby z Fintechu zaznamenaly růst o 49 % na 4,41 mld. USD (měnově očištěné +47 %). Reklamní tržby stouply na měnově očištěné bázi o 62 % a společnost poprvé překonala 10% podíl na trhu digitální reklamy v Latinské Americe.

Hrubý zisk vzrostl meziročně o 34 % na 4,16 mld. USD, hrubá marže poklesla o 4,7 p. b. na 40,9 %.

Provozní zisk klesl o 17 % na 683 mil. USD. Wall Street očekávala 675,3 mil. USD. Provozní marže se meziročně snížila o 5,5 p. b. na 6,7 %.

Čisté tržby Mercado Libre ve 2Q podle země
(mld. USD) Země Čisté tržby Konsensus Meziroční změna Brazílie 5,53 5,16 +59 % Mexiko 2,34 2,15 +55 % Argentina 1,84 1,95 +20 % Ostatní 0,46 0,42 +63 % Očištěný zisk EBITDA klesl o 4,8 % na 975 mil. USD. Trh očekával 903,7 mil. USD.

Čistý zisk se snížil o 11 % na 466 mil. USD, čistá marže dosáhla 4,6 % proti 7,7 % ve 2Q 2025.

Očištěné volné hotovostní toky dosáhly 214 mil. USD, a to i po investicích 441 mil. USD do majetku a nehmotných aktiv a 2,1 mld. USD do expanze úvěrového portfolia, což částečně kompenzovalo 560 mil. USD nového fintechového financování.

Provozní ukazatele Hrubý objem zboží (GMV) vzrostl o 44 % na 21,93 mld. USD (měnově očištěné +36 %), konsensus činil 21,18 mld. USD. Počet prodaných položek stoupl o 45 % na 795 mil. Měnově očištěný růst GMV zůstal silný v Brazílii (+39 %), zatímco v Mexiku zpomalil na 26 % a v Argentině na 38 %. Počet unikátních aktivních kupujících vzrostl meziročně o 18 mil. na 89 mil.

Měsíčně aktivní uživatelé fintechu se zvýšili o 20 mil. na 88,0 mil. Celkový objem plateb (TPV) poprvé překonal hranici 100 mld. USD, když vzrostl o 56 % na 100,95 mld. USD, přičemž konsensus byl na úrovni 93,29 mld. USD.

Úvěrové portfolio vzrostlo o 75 % na 16,38 mld. USD. Nejrychleji rostly kreditní karty (+91 % na 7,68 mld. USD), spotřebitelské úvěry stouply o 64 % na 5,77 mld. USD a úvěry obchodníkům o 59 % na 2,54 mld. USD.

Čistá úroková marže po ztrátách (NIMAL) se mezikvartálně zlepšila o 2,9 p. b. na 20,7 %, meziročně ale klesla z 23,0 % kvůli vyššímu podílu kreditních karet.

Komentář společnosti „MercadoLibre zaznamenalo ve 2Q 2026 další kvartál mimořádného růstu a udrželo si silnou dynamiku, kterou jsme pozorovali již na začátku roku. Čisté tržby a finanční výnosy meziročně vzrostly o 50 % – nejrychlejším tempem za poslední čtyři roky – na 10,2 mld. USD, přičemž nejsilnější vývoj nadále vykazuje Brazílie. Provozní zisk dosáhl 683 mil. USD, což představuje meziroční pokles o 17 %, s provozní marží 6,7 %, která zůstala oproti předchozímu kvartálu v zásadě stabilní. Nadále nastavujeme naše investice tak, aby upřednostňovaly dlouhodobou tvorbu hodnoty před krátkodobou ziskovostí – tento kompromis činíme uvážlivě a pouze tam, kde vidíme jasné důkazy o budoucích ekonomických přínosech. V našem posledním dopise akcionářům jsme popsali rozsah příležitostí, které před námi otevírá digitální ekonomika Latinské Ameriky, a vysvětlili, proč věříme, že odvážné investice již dnes jsou správnou strategií, jak těchto příležitostí využít. V tomto kvartále se chceme zaměřit na jiný aspekt téhož příběhu: proč struktura našeho podnikání – jediný ekosystém propojující e-commerce a fintech – vytváří pozitivní zpětnovazební efekt, v němž každá z těchto oblastí posiluje tu druhou, a proč prohlubování zapojení zákazníků tento efekt dále urychluje a přetváří jej v trvalou konkurenční výhodu. Jsme přesvědčeni, že právě tento mechanismus bude v dlouhodobém horizontu podporovat růst ziskovosti i hotovostních toků,“ uvedla společnost v dopise akcionářům.

Akcie MercadoLibre Akcie MercadoLibre (MELI) obchodované na burze NASDAQ v předburzovní fázi oslabují o 4,01 % na 1 845,5 USD.

Akcie MercadoLibre (MELI) před výsledky na 1 922,57 USD Ukazatel   Ukazatel   Kapitalizace (mld. USD) 97,5 P/E 52,3 Vývoj za letošní rok (%) -4,6 Očekávané P/E 48,9 52týdenní minimum (USD) 1495 Prům. cílová cena (USD) 2264 52týdenní maximum (USD) 2548,5 Dividendový výnos (%) -- Zdroj: MercadoLibre, Bloomberg

Michal Bárta, Fio banka, a.s.

AI Is Selling Off, But These 5 Stocks Could Benefit NextMercadoLibre NASDAQ: MELI reported second-quarter 2026 net revenue of more than $10 billion for the first time, representing 50% year-over-year growth, while the company continued to emphasize investments in commerce, fintech, logistics and artificial intelligence over near-term margin expansion.

Income from operations totaled $683 million, producing a 6.7% operating margin that was broadly stable sequentially but down 550 basis points from a year earlier. Chief Financial Officer Martin de los Santos said the margin performance reflected a deliberate decision to reinvest profits into initiatives intended to increase user engagement, growth and long-term scale.

Get MercadoLibre alerts:

5 Best Growth Stocks for the Next 10 YearsAdjusted free cash flow was $214 million during the quarter, despite $441 million in capital expenditures and $2.1 billion invested in growing the company’s credit portfolio, de los Santos said.

Brazil engagement and commerce investments Management highlighted the effects of its decision one year earlier to lower the free-shipping threshold in Brazil. De los Santos said items per buyer in Brazil increased 19% year over year in the second quarter, even as the company added new buyers who tend to purchase less initially. Conversion increased by 1.1 percentage points from a year earlier, while daily active users continued to grow faster than monthly active users.

MarketBeat Week in Review – 05/11 - 05/15The company said buyers acquired after the threshold change were purchasing more items across more categories and showing better retention than earlier cohorts. De los Santos characterized the trend as a change in consumer behavior rather than simply an expansion in the number of users.

In response to questions about future Brazil investments, CEO Ariel Szarfsztejn said MercadoLibre does not make investment decisions to manage comparisons with prior-year growth rates. Rather, the company intends to pursue initiatives it believes improve the consumer value proposition and strengthen its market position.

Management also discussed lower seller take rates in certain Brazil categories and discounts for customers who pay with Pix. Szarfsztejn said lower take rates have historically accelerated the growth of successful sellers on the platform. He said there was no material margin effect specifically tied to the influx of new sellers.

Credit growth and asset quality MercadoLibre’s credit portfolio reached $16.4 billion, up 75% year over year. The company reported a 50-90 day nonperforming loan ratio of 7.0% for the total portfolio and 4.6% for credit cards, both near historical lows, according to de los Santos.

Net interest margin after losses, or NIMAL, rose to 21% in the second quarter from 18% in the first quarter. Management attributed the improvement partly to normalized provisions in Brazil’s consumer portfolio following a first-quarter spike. De los Santos said the company’s move toward lower-risk consumer and merchant borrowers, as well as its focus on lower-risk credit card users, supported credit quality.

President of Fintech Osvaldo Gimenez said the company has not seen deterioration in Brazil’s credit book, with NPL levels roughly in line with or better than a year earlier. He said MercadoLibre has previously responded to weaker credit conditions by reducing available credit lines or tightening issuance, and management believes its underwriting models have improved.

Gimenez acknowledged that the 90-day-plus delinquency measure can move with origination pace and product mix. He said some early-year borrowers in one product defaulted slightly more than expected, prompting the company to slow issuance in that product, but said the trend was not a major concern.

Credit card issuance continued to accelerate. In Brazil, MercadoLibre issued 2.6 million cards in the quarter, compared with 1.6 million cards a year earlier. Gimenez said credit card cohorts generally reach NIMAL breakeven within 12 to 18 months, although faster issuance has lowered the average maturity of the portfolio and pressured aggregate card profitability in the near term.

In Argentina, where MercadoLibre began issuing cards about three quarters ago, Gimenez said demand and usage have been strong and repayment trends have met expectations. He added that the company has been able to select lower-risk users from its large Mercado Pago customer base.

Margin pressures and reinvestment De los Santos said sequential operating margins benefited from stronger credit profitability and operating-cost leverage in Brazil, where operating expenses declined by 2.5 percentage points as a share of revenue from the prior quarter. Those gains were offset by investments in commerce and pressure in the acquiring business.

Acquiring margins were affected by higher industry chip costs for point-of-sale devices and a one-time charge associated with restocking a significant volume of devices in Mexico. MercadoLibre sells the devices at a loss and recognizes that loss when inventory is purchased, management said. Gimenez added that the company did not raise device prices because payback periods remained in line with expectations and competitors had not increased prices.

The company also absorbed some higher logistics costs related to energy, while passing some of those costs through to users. De los Santos described the related margin compression as slight.

Management said its investment philosophy remains unchanged: MercadoLibre will continue to fund initiatives where it sees engagement and growth targets, along with a clear path to profitability.

AI, advertising and cross-border commerce MercadoLibre spent about $80 million more on AI during the quarter than it did a year earlier, de los Santos said. The company is using AI in search, advertising, customer service and software development. Management said AI-enhanced search has improved marketplace conversion, items sold and advertising performance by providing better context for selecting and displaying ads.

Advertising revenue grew more than 70% year over year, aided by an AI-powered advertising tool whose usage increased 66%, according to de los Santos. The company said AI-supported customer service has reduced its customer-service workforce to about 7,000 representatives from 10,000 four years ago, despite the business growing threefold over that period.

Management said its roughly 20,000 developers are using AI tools and that AI-generated code now represents the majority of code produced. Szarfsztejn cautioned that product-development efficiency gains were not solely attributable to AI, but said the technology is improving productivity and helping MercadoLibre avoid expanding its engineering team in 2026.

On cross-border trade, Szarfsztejn said cross-border GMV increased about 60% year over year, with triple-digit growth in Brazil, Argentina and other markets. Volume from the company’s China fulfillment center grew 170% sequentially. He said the facility has improved delivery times and reduced cancellations while cross-border unit economics have improved over several quarters through greater scale and operational learning.

Management reiterated that its central strategy is to deepen connections between MercadoLibre’s marketplace and Mercado Pago. The company said customers who use both businesses generate more marketplace GMV, more payment volume and higher profitability than users of either service alone.

About MercadoLibre (NASDAQ:MELI)MercadoLibre, Inc operates an integrated e-commerce and fintech ecosystem serving consumers and businesses across Latin America. The company provides an online marketplace that connects buyers and sellers for a wide range of goods and services, supported by tools for merchants, advertising, and classifieds. Over time MercadoLibre has expanded beyond its marketplace roots into complementary areas that support digital commerce end to end.

Key offerings include its marketplace platform and a suite of logistics and payment services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in MercadoLibre Right Now?Before you consider MercadoLibre, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and MercadoLibre wasn't on the list.

While MercadoLibre currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.

Get This Free Report