MercadoLibre (NASDAQ:MELI) Releases Quarterly Earnings Results, Misses Expectations By $0.63 EPS

MercadoLibre (NASDAQ:MELI) posted its quarterly earnings results on Tuesday. The company reported $11.03 earnings per share for the quarter, missing the consensus estimate of $11.66 by ($0.63), Zacks reports. The company had revenue of $8.76 billion during the quarter, compared to the consensus estimate of $8.45 billion. MercadoLibre had a net margin of 7.93% and a return on equity of 39.03%. The company’s revenue for the quarter was up 44.6% on a year-over-year basis. During the same period last year, the firm posted $12.61 earnings per share.

Here are the key takeaways from MercadoLibre’s conference call:

• Q4 net revenues grew 45% year?over?year (full?year revenues +39%), marking the 28th consecutive quarter of growth above 30% and signaling continued top?line momentum.
• Commerce accelerated in Brazil and Mexico — Brazil GMV +35% YoY and sold items +45% YoY after lowering the free?shipping threshold, which lifted purchase frequency, expanded buyer mix, and helped drive an ~11% decline in unit shipping costs.
• Fintech strength — Mercado Pago monthly active users grew ~30% for 10 consecutive quarters; the credit portfolio nearly doubled to $12.5 billion with ~3 million new credit cards issued in Q4 and Assets Under Management near $19 billion (+78% YoY), alongside leading NPS in core markets.
• AI is materially boosting monetization and efficiency — advertising revenue accelerated 67% driven by AI bidding and campaign tools, Mercado Pago’s AI assistant resolves 87% of interactions, and AI tools helped acquiring TPV growth (Brazil +25%, Mexico +50%).
• Margin pressure from deliberate investments — management estimates these initiatives (shipping threshold changes, credit card expansion, 1P/cross?border, OneB, CBT, and smaller?country scale) compressed margins by roughly 5–6 percentage points, and they intend to keep investing rather than prioritize short?term margin optimization.

MercadoLibre Trading Up 3.1%

MELI stock opened at $1,922.56 on Wednesday. The company has a market capitalization of $97.47 billion, a PE ratio of 46.91, a price-to-earnings-growth ratio of 0.92 and a beta of 1.44. The company’s 50 day moving average price is $2,059.88 and its two-hundred day moving average price is $2,171.73. MercadoLibre has a one year low of $1,723.90 and a one year high of $2,645.22. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.15 and a current ratio of 1.17.

Key Stories Impacting MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Revenue and growth beat — MELI reported ~45% YoY net revenue growth for Q4 and broader 2025 momentum (strong results in Mexico, expanding unique active buyers), which supports longer?term top-line expectations. MercadoLibre’s Q4 sales top estimates (Yahoo)
• Positive Sentiment: Strategic investments driving growth — Management highlighted continued investments in AI, logistics/shipping and Mercado Pago that are already contributing to GMV and revenue expansion (GMV +35% in Brazil & Mexico). These moves can increase market share over time even if they compress near?term margins. Investments in AI and shipping (Seeking Alpha)
• Positive Sentiment: Analyst support remains largely bullish — Major shops preserved Buy/Outperform stances (BTIG and Wedbush trimmed price targets but kept positive ratings), signaling continued conviction in MELI’s multi-year growth story. Analyst PT changes (Benzinga)
• Neutral Sentiment: Readouts and materials available — The earnings call transcript and slide deck provide management detail on margin trajectory, AI rollouts and regional performance for investors doing deeper diligence. Q4 slide deck (MarketBeat link)
• Negative Sentiment: EPS miss and margin pressure — MELI missed quarterly EPS estimates ($11.03 vs. ~$11.65 consensus) and management flagged margin compression from investments, which prompted selling in extended trading and created short?term downside risk. Mixed Q4 reaction (247WallSt)
• Negative Sentiment: Analyst price target trims — BTIG cut its PT to $2,650 and Wedbush trimmed to $2,400; while still positive, the reductions reflect tempered near?term margin/earnings visibility and may cap upside in the near term. PT cuts (Benzinga)

Analyst Ratings Changes

MELI has been the topic of a number of recent research reports. Cantor Fitzgerald cut their target price on MercadoLibre from $2,750.00 to $2,400.00 and set an “overweight” rating on the stock in a report on Wednesday. Benchmark decreased their price target on MercadoLibre from $2,875.00 to $2,780.00 and set a “buy” rating for the company in a research report on Thursday, October 30th. JPMorgan Chase & Co. raised shares of MercadoLibre from a “neutral” rating to an “overweight” rating and increased their target price for the company from $2,650.00 to $2,800.00 in a research report on Thursday, February 12th. Morgan Stanley increased their target price on shares of MercadoLibre from $2,850.00 to $2,950.00 and gave the stock an “overweight” rating in a research report on Monday, November 3rd. Finally, Weiss Ratings lowered MercadoLibre from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $2,828.67.

Insider Transactions at MercadoLibre

In other news, Director Stelleo Tolda sold 246 shares of the company’s stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $2,047.88, for a total transaction of $503,778.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Emiliano Calemzuk sold 45 shares of MercadoLibre stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $2,027.37, for a total value of $91,231.65. Following the completion of the sale, the director owned 257 shares in the company, valued at approximately $521,034.09. This represents a 14.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,136 shares of company stock worth $2,308,788. Company insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On MercadoLibre

A number of institutional investors have recently bought and sold shares of MELI. Transamerica Financial Advisors LLC purchased a new position in MercadoLibre during the 4th quarter valued at about $26,000. Darwin Wealth Management LLC bought a new stake in shares of MercadoLibre during the 2nd quarter valued at $29,000. Caitong International Asset Management Co. Ltd purchased a new stake in MercadoLibre in the 3rd quarter worth approximately $35,000. Jessup Wealth Management Inc purchased a new stake in MercadoLibre in the 4th quarter worth $38,000. Finally, GW&K Investment Management LLC raised its position in shares of MercadoLibre by 81.3% during the fourth quarter. GW&K Investment Management LLC now owns 29 shares of the company’s stock valued at $58,000 after buying an additional 13 shares during the last quarter. 87.62% of the stock is owned by institutional investors.

MercadoLibre Company Profile

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.