MercadoLibre (NASDAQ:MELI) Issues Quarterly Earnings Results

MercadoLibre (NASDAQ:MELI) announced its earnings results on Thursday. The company reported $8.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.75 by ($0.52), FiscalAI reports. The business had revenue of $8.85 billion for the quarter, compared to analysts’ expectations of $8.29 billion. MercadoLibre had a net margin of 6.04% and a return on equity of 30.84%. The firm’s quarterly revenue was up 49.0% on a year-over-year basis. During the same quarter last year, the firm earned $9.74 EPS.

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

• Net revenue grew 49% year?over?year, the strongest pace since Q2 2022, with Brazil a standout (GMV +38% and items sold +56%) driven by the lower free?shipping threshold.
• Fintech momentum remains strong: Mercado Pago MAUs +29%, AUM +77%, credit portfolio nearly doubled to $14.6 billion, and the company issued 2.7 million credit cards as credit card TPV (+90%) and MAUs (+68%) accelerate.
• Management deliberately increased investment intensity (free shipping, targeted take?rate cuts, 1P/CVT logistics, scaling credit cards), resulting in operating income of $611 million and a 6.9% margin that they expect to hold near current levels in the near term.
• Provisions and cost of risk rose materially—about one?third of margin compression came from higher provisions in Brazil—driven by a larger share of immature credit card cohorts and longer?duration personal loans, though management says asset quality remains stable.
• Unit shipping costs fell ~17% YoY from better volume density, slow?shipping utilization and ops/tech improvements, and early gen?AI (LLM) deployment in search reportedly improved conversion and ad returns.

MercadoLibre Stock Down 12.7%

NASDAQ:MELI traded down $237.49 during midday trading on Friday, reaching $1,632.52. 2,329,550 shares of the stock traded hands, compared to its average volume of 384,435. The stock has a market capitalization of $82.77 billion, a PE ratio of 43.09, a price-to-earnings-growth ratio of 0.83 and a beta of 1.41. MercadoLibre has a 12-month low of $1,593.21 and a 12-month high of $2,645.22. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.15 and a current ratio of 1.17. The business has a 50-day moving average of $1,755.81 and a two-hundred day moving average of $1,967.33.

Analysts Set New Price Targets

A number of brokerages recently issued reports on MELI. Benchmark decreased their price target on MercadoLibre from $2,780.00 to $2,380.00 and set a “buy” rating for the company in a research note on Friday. Raymond James Financial set a $2,000.00 price target on MercadoLibre in a report on Friday. Daiwa Securities Group cut MercadoLibre from a “buy” rating to a “hold” rating and set a $1,800.00 price objective on the stock. in a research note on Friday. UBS Group decreased their target price on MercadoLibre from $2,900.00 to $2,700.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Finally, Morgan Stanley lowered their target price on MercadoLibre from $2,800.00 to $2,600.00 and set an “overweight” rating for the company in a report on Monday, March 9th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $2,465.33.

Institutional Trading of MercadoLibre

Hedge funds and other institutional investors have recently made changes to their positions in the business. Transamerica Financial Advisors LLC purchased a new position in MercadoLibre during the 4th quarter worth $26,000. Darwin Wealth Management LLC purchased a new stake in MercadoLibre in the second quarter valued at about $29,000. Caitong International Asset Management Co. Ltd purchased a new stake in MercadoLibre in the third quarter valued at about $35,000. Jessup Wealth Management Inc acquired a new stake in MercadoLibre in the fourth quarter worth about $38,000. Finally, GW&K Investment Management LLC grew its stake 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 worth $58,000 after acquiring an additional 13 shares during the last quarter. Hedge funds and other institutional investors own 87.62% of the company’s stock.

MercadoLibre News Roundup

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: MercadoLibre reported 49% year-over-year revenue growth to about $8.85 billion, showing continued strength in commerce, fintech, and ad sales, and management said strategic investments are driving market share gains. Article: Mercado Libre Kicks Off 2026 with Fastest Revenue Growth in Almost Four Years as Strategic Investments Drive Market Share Gains
• Positive Sentiment: Despite the selloff, multiple firms still kept buy or outperform ratings, including Benchmark, BTIG, and Scotiabank, signaling that some analysts still see substantial upside from current levels. Article: Analyst price target updates
• Neutral Sentiment: Management emphasized that it is prioritizing growth investments such as free shipping, a Mercado Pago credit card, first-party selection, and cross-border trade, which supports long-term expansion but can weigh on near-term margins. Article: Mercado Libre Sacrifices Short-Term Profits to Fuel Growth
• Neutral Sentiment: The company’s earnings call and transcripts reinforced the same message: strong revenue momentum, but continued investment posture and pressure on profitability metrics. Article: MercadoLibre, Inc. (MELI) Q1 2026 Earnings Call Transcript
• Negative Sentiment: MercadoLibre posted $8.23 EPS, missing analyst expectations even though revenue beat estimates, which is the main reason the stock is reacting negatively. Article: MercadoLibre (NASDAQ:MELI) Exceeds Q1 CY2026 Expectations But Stock Drops
• Negative Sentiment: Analysts turned more cautious after the report: Daiwa downgraded MELI to hold, and Benchmark, BTIG, and Scotiabank all cut price targets, which adds to near-term sentiment headwinds. Article: Benchmark price target lowered

About MercadoLibre

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.