MELI

MercadoLibre, Inc. (NASDAQ:MELI) is included among the 10 Best Reddit Stocks to Buy According to Billionaires. Photo by Vitaly Taranov on Unsplash On May 13, JPMorgan lowered its price recommendation on MercadoLibre, Inc. (NASDAQ:MELI) to $1,900 from $2,100. It reiterated a Neutral rating on the shares. The firm updated its model after earnings and said the competitive cycle would likely continue to pressure margins. On the same day, Citi downgraded MELI to Neutral from Buy and reduced its price target to $1,950 from $2,200. The firm said the company’s monetization path appeared less certain after a “weaker-than-expected” Q1 report. According to the analyst, MercadoLibre’s ongoing investments and pressure on take rates were creating monetization challenges. MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguay-based e-commerce company with Argentine roots. Its platforms support both retail and wholesale transactions over the internet. The company offers a range of services designed to help users complete commercial transactions more efficiently. While we acknowledge the potential of MELI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Blue Chip Stocks to Buy for Your Retirement Portfolio and 10 Safe Stocks to Buy for the Long Term in 2026 Disclosure: None. Follow Insider Monkey on Google News.

MercadoLibre, Inc. (NASDAQ:MELI) is one of the Best Long-Term Stocks to Buy Now for High Returns. On May 7, the company released its financial results for Q1 2026, with net revenues & financial income coming at $8,845 million, reflecting a rise of 49% YoY and 46% on the FX-neutral basis. The growth demonstrates continued progress on the company’s strategic objectives throughout Commerce and Fintech in all of its major markets, and mainly in Brazil. MercadoLibre, Inc. (NASDAQ:MELI)’s net income amounted to $417 million, with a margin of 4.7%. The company’s income from operations stood at $611 million, reflecting a fall of 20% YoY, with a margin compression of 600 bps to sit at 6.9%. MercadoLibre, Inc. (NASDAQ:MELI) focused on long-term investments rather than short-term profitability, with such investments resulting in healthy growth, engagement, and scale. The company highlighted that momentum in Fintech Services was strong in Q1 2026, with MAUs touching 83 million and increasing 29% YoY. MercadoLibre, Inc. (NASDAQ:MELI) operates online commerce platforms. While we acknowledge the potential of MELI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts. Disclosure: None. Follow Insider Monkey on Google News.

MercadoLibre’s first quarter was defined by rapid revenue growth and deliberate margin compression, prompting a negative market reaction. Management attributed the 49% year-over-year sales surge to successful strategic moves, notably the lower free shipping threshold in Brazil and targeted seller incentives. CFO Martin de Los Santos emphasized that investments in logistics and fintech, especially credit cards, are fueling both user acquisition and ecosystem engagement. However, he acknowledged that these choices, while yielding top-line momentum, contributed to a lower operating margin as the company prioritizes long-term gains over near-term profitability. Is now the time to buy MELI? Find out in our full research report (it’s free). Revenue: $8.85 billion vs analyst estimates of $8.36 billion (49% year-on-year growth, 5.8% beat) Adjusted EPS: $8.23 vs analyst expectations of $8.47 (2.9% miss) Adjusted EBITDA: $857 million vs analyst estimates of $849 million (9.7% margin, 0.9% beat) Operating Margin: 6.9%, down from 12.9% in the same quarter last year Unique Active Buyers: 84 million, up 17 million year on year Market Capitalization: $79.19 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Irma Sgarz (Goldman Sachs) asked about the sustainability of current investment levels and margin outlook. CFO Martin de Los Santos reiterated that the investment philosophy has not changed and that current margins reflect deliberate long-term growth decisions. Andrew Ruben (Morgan Stanley) inquired about the rationale for lowering take rates in Brazil and the balance between seller and buyer incentives. COO Ariel Szarfsztejn explained these were targeted moves, not platform-wide cuts, and were based on proven volume and engagement gains. Marcelo Santos (JPMorgan) probed the mix and risk profile of the growing credit portfolio in Brazil. Osvaldo Giménez, Fintech Head, clarified that higher provisions were due to longer loan durations and expansion into new segments, but asset quality remained stable. Deepak Mathivanan (Cantor Fitzgerald) questioned the impact of increased competition in Brazil, particularly from Amazon. Sz...

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. MercadoLibre (MELI) is back in focus after its Q1 2026 earnings, which showed strong revenue expansion across Commerce and Fintech, especially in Brazil, while profitability tightened as the company pushed heavier investment. See our latest analysis for MercadoLibre. At a share price of $1,546.81, MercadoLibre has seen its share price fall 17.38% over the past month and 21.63% year to date, while the 1 year total shareholder return is down 40.16%. This suggests that momentum has cooled despite positive responses from some long term institutional investors to the recent selloff. If MercadoLibre’s recent swings have you rethinking concentration risk, it could be worth widening the opportunity set through a curated list of 19 top founder-led companies With the stock down sharply while analysts’ targets still sit much higher, the gap between current price and implied value looks wide. So is MercadoLibre on sale after a temporary setback, or is the market correctly pricing in a tougher road ahead? Simply Wall St’s most followed narrative pegs MercadoLibre’s fair value at $2,439.88, well above the last close of $1,546.81, framing the recent selloff against a higher long term value anchor. Read the complete narrative. It may be useful to explore what kind of revenue curve, margin reset, and future earnings level are implied in that fair value, and how the required valuation multiple compares with typical retailers. Result: Fair Value of $2,439.88 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on credit quality in Brazil and Argentina holding up, and on heavy shipping and marketing spend eventually easing instead of keeping margins under pressure. Find out about the key risks to this MercadoLibre narrative. The SWS DCF model also sees MercadoLibre as undervalued, with the stock trading at $1,546.81 compared with an estimated future cash flow value of $3,039.20. That is a wide gap for you to weigh, especially if earnings and cash generation end up tracking differently from current assumptions. Look into how the SWS DCF model arrives at its fair value. Given the mixed signals in this article, it makes sense to pressure test the sto...

The most recent earnings report from MercadoLibre, Inc. (NASDAQ:MELI) was disappointing for shareholders. While the headline numbers were soft, we believe that investors might be missing some encouraging factors. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. MercadoLibre has an accrual ratio of -1.35 for the year to March 2026. That indicates that its free cash flow quite significantly exceeded its statutory profit. To wit, it produced free cash flow of US$12b during the period, dwarfing its reported profit of US$1.92b. MercadoLibre's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Happily for shareholders, MercadoLibre produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that MercadoLibre's statutory profit actually understates its earnings potential! Better yet, its EPS are growing strongly, which is nice to see. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified...

MercadoLibre (MELI) operates with zero China exposure risk while fintech revenue surged 51% and Brazil unit buyer growth hit its fastest pace in five years. The analyst who called NVIDIA in 2010 just named his top 10 stocks and MercadoLibre wasn't one of them. Get them here FREE. NVIDIA (NASDAQ:NVDA) is back on every screen this week, riding a 19.96% one-month rally as traders front-run the agentic AI narrative and position around President Trump's trip to Beijing. But here's what you should actually be watching. The Reddit feed tells the story the headlines won't. One post celebrated a "1240% gain on NVDA ($240k) I'm scared", another flagged that Blackwell GPU rental prices fell 30% over a weekend, and sentiment whipsawed from very bullish (88) to bearish (22) inside 24 hours. Polymarket traders are pricing in a 97.6% probability of an earnings beat and an 81% chance of $240 by month-end. That is a crowded trade by any honest definition. Layer on the China overhang. Management's Q1 FY2027 guidance of roughly $78.0 billion explicitly excludes any Data Center compute revenue from China, after a $4.5 billion H20 charge earlier in the cycle. Any handshake or hand-slap out of the Trump visit moves the stock several percent in either direction. At a $5.47 trillion market cap and 25x trailing sales, retirement money does not need that kind of headline risk. Consider MercadoLibre (NASDAQ:MELI) instead. The Latin American commerce and fintech operator is down 20.2% year-to-date while the fundamentals quietly compound. Reddit activity is classified as "low" across every recent session, with the lone driving post explicitly framing it as a "non-AI, non-rocketship based growth stock". That is exactly the kind of setup a seasoned investor wants. The analyst who called NVIDIA in 2010 just named his top 10 stocks and MercadoLibre wasn't one of them. Get them here FREE. Three reasons to redirect attention here: 1. Geographic insulation from the Washington-Beijing crossfire. Brazil, Mexico, and Argentina drive the revenue line. Brazil revenue grew 55% year over year in Q1, with unique buyer growth at its fastest pace in five years. Trump's tariff theater barely touches this P&L. 2. A fintech engine that does not need an AI thesis to work. Fintech revenue rose 51% to $4.07 billion, monthly active users reached 83 million, assets under management climbed 77% to nearly $20 bil...

MercadoLibre MELI shares have declined 15.6% following the release of its first-quarter 2026 results on May 7, 2026, as investors reacted negatively to another quarter of aggressive spending, margin compression and rising credit-related risks despite strong top-line growth. The selloff reflects growing concern that MELI is prioritizing scale expansion and ecosystem investments at a time when profitability visibility is weakening and free cash flow remains under pressure. On a year-to-date basis, MELI has plunged 21.6%, underperforming the Zacks Electronic Commerce industry's return of 7.7% and the Zacks Retail and Wholesale sector's advance of 5.8%. Among Peers, Amazon AMZN has returned 15.2% year to date while Nu Holdings NU and Sea Limited SE have declined 20.7% and 24.7% respectively, suggesting regional macro conditions account for only part of MELI's relative weakness. Let's delve deeper to determine what to do with the stock at current levels. Image Source: Zacks Investment Research MELI delivered another quarter of strong revenue expansion, with net revenues and financial income increasing 49% year over year to $8.85 billion. Gross merchandise volume (GMV) increased 42% year over year, while total payment volume surged 50%. Mercado Pago’s monthly active users crossed 83 million, highlighting strong engagement trends across the ecosystem. However, beneath the headline growth, profitability continues to weaken materially, driven by rising provisions, shipping subsidies and the upfront costs of scaling the credit card portfolio across three markets. Operating income declined 20% year over year to $611 million and operating margin compressed 600 basis points to 6.9%, while net income fell 16% to $417 million, producing an EPS of $8.23, missing the Zacks Consensus Estimate by 6.26% and declining 15.5% year over year. The Zacks Consensus Estimate for second-quarter 2026 EPS is pegged at $9.94, revised down 17.4% over the past 30 days and implying a 3.59% year-over-year decline, suggesting the earnings pressure is not yet at its trough. MercadoLibre, Inc. price-consensus-chart | MercadoLibre, Inc. Quote MELI is simultaneously deploying capital across free shipping, a rapidly scaling credit card portfolio, first-party inventory, cross-border trade and fulfillment infrastructure, each investment track carrying long payback horizons. The fulfillment network spa...

MercadoLibre MELI reported first-quarter 2026 earnings of $8.23 per share, which missed the Zacks Consensus Estimate by 6.26% and declined 15.5% year over year. Revenues rose 49% on a year-over-year basis (46% on a foreign exchange-neutral basis) to $8.85 billion, surpassing the Zacks Consensus Estimate by 4.85%. Total revenues were driven by continued strength across commerce and fintech segments, which grew 47% and 51% year over year to $4.87 billion and $3.98 billion, respectively. In the commerce segment, Brazil delivered foreign exchange-neutral GMV growth of 38% year over year, accelerating meaningfully from prior quarters following the lowering of the free shipping threshold in 2025. Mexico posted foreign exchange-neutral GMV growth of 28% year over year, while Argentina delivered 41% foreign exchange-neutral GMV growth year over year. Brazil GMV growth has doubled from a high base in just nine months, with unique buyer growth accelerating to 32% year over year, the fastest pace in five years. Revenues from MELI's advertising services rose 73% year over year on a reported U.S. dollar basis and 63% on a foreign exchange-neutral basis. MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote Brazil: Net revenues in the first quarter reached $4.77 billion (54% of total revenues), up 55% year over year, supported by accelerating GMV growth, credit card portfolio expansion and robust advertising uptake. Mexico: The market generated revenues of $1.98 billion (22.3% of total revenues), increasing 62% year over year. Items sold growth of 34% was strong, though management noted that this year's tax reform created headwinds for small and medium-sized sellers, moderating sequential momentum in foreign exchange-neutral GMV growth. Argentina: Net revenues in the reported quarter were $1.70 billion (19.2% of total revenues), reflecting an increase of 23% year over year. Foreign exchange-neutral GMV growth of 41% year over year on a high base demonstrates the continued strength of MELI's value proposition versus physical retail. Other countries: These markets generated revenues of $397 million (4.5% of total revenues), representing growth of 59.1% on a year-over-year basis, with cross-border trade contributing meaningfully to assortment depth in markets such as Colombia and Peru. Gross Merchandise Volume of $19 billion increased 42% year over...

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Financial Officer — Martin De Los Santos President, MercadoLibre Commerce — Ariel Szarfsztejn President, Mercado Pago FinTech — Osvaldo Giménez Martin De Los Santos: Hello, everyone. Thank you for joining us. I am pleased to report that MercadoLibre, Inc. delivered another excellent quarter to start 2026, with net revenue up 49% year over year, our strongest growth rate since Q2 2022. This performance reflects the strategic investments we have made consistently over the past several quarters, which are bearing fruit with increasing clarity. Chief among them is our decision to lower the free shipping threshold in Brazil, which has proven to be a sustained growth engine across multiple quarters. By bringing more buyers into the ecosystem, we are strengthening network effects: higher purchase frequency, broader assortment, and a logistics network that becomes more efficient with every incremental package. As a result, Brazil delivered another standout quarter for commerce. GMV grew 38% year over year, as items sold growth accelerated to 56%. This is more than double the quarterly growth rate prior to lowering the free shipping threshold. Free shipping penetration reached a new record and unit economics continued to improve, with cost per shipment down 17% year over year in local currency. In other words, higher demand is driving lower cost. Outside Brazil, we delivered solid growth in commerce and continued to gain share across key markets. In Mexico, GMV grew 28% year over year, while in Argentina, GMV grew by 41%. Chile remained strong with GMV up 40% year over year, driven by higher free shipping penetration and faster deliveries. FinTech services momentum also remained strong, with solid growth across our core indicators. Mercado Pago monthly active users grew 29% year over year, AUM grew 77%, and our credit portfolio nearly doubled to $14.6 billion. This highlights that engagement is both broadening and deepening as more users choose our ecosystem as their primary financial relationship, supporting our long-term objective of becoming Latin America’s largest digital bank. We continue to invest in our credit card as a central pillar of this long-term objective, issuing 2.7 million credit cards this quarter. Credit card TPV grew 90% year over year and monthly active users grew 68%. The cr...

MercadoLibre (MELI) came out with quarterly earnings of $8.23 per share, missing the Zacks Consensus Estimate of $8.78 per share. This compares to earnings of $9.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -6.26%. A quarter ago, it was expected that this operator of an online marketplace and payments system in Latin America would post earnings of $11.77 per share when it actually produced earnings of $11.03, delivering a surprise of -6.29%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. MercadoLibre, which belongs to the Zacks Internet - Commerce industry, posted revenues of $8.85 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.85%. This compares to year-ago revenues of $5.94 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MercadoLibre shares have lost about 8.6% since the beginning of the year versus the S&P 500's gain of 7.6%. While MercadoLibre has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MercadoLibre was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near fut...

For the quarter ended March 2026, MercadoLibre (MELI) reported revenue of $8.85 billion, up 49% over the same period last year. EPS came in at $8.23, compared to $9.74 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $8.44 billion, representing a surprise of +4.85%. The company delivered an EPS surprise of -6.26%, with the consensus EPS estimate being $8.78. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how MercadoLibre performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Gross merchandise volume: $18.95 billion versus the four-analyst average estimate of $17.95 billion. Total payment volume: $87.19 billion versus the three-analyst average estimate of $83.61 billion. Geographic Revenue- Brazil: $4.77 billion compared to the $4.47 billion average estimate based on two analysts. The reported number represents a change of +54.9% year over year. Geographic Revenue- Other countries: $397 million versus the two-analyst average estimate of $340.31 million. The reported number represents a year-over-year change of +59.4%. Geographic Revenue- Mexico: $1.98 billion compared to the $2.02 billion average estimate based on two analysts. The reported number represents a change of +61.7% year over year. Geographic Revenue- Argentina: $1.7 billion versus the two-analyst average estimate of $1.65 billion. The reported number represents a year-over-year change of +22.9%. View all Key Company Metrics for MercadoLibre here>>> Shares of MercadoLibre have returned +3.7% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MercadoLibre, Inc....

Interested in MercadoLibre, Inc.? Here are five stocks we like better. Investment-led growth: Net revenue rose an impressive 49% year‑over‑year while operating income was $611 million (6.9% margin), reflecting deliberate, short‑term margin pressure as management invests heavily in credit cards, free shipping, logistics and 1P/CBT expansion to drive long‑term cash flow. Brazil strategy driving commerce gains: lowering the free‑shipping threshold (to BRL 19) and other buyer‑facing moves helped Brazil GMV grow 38% and items sold rise 56%, with unit shipping costs down 17%, and the company implemented targeted (not platform‑wide) take‑rate cuts in competitive price bands to boost demand and listings. Fintech acceleration with caveats: Mercado Pago MAUs grew 29%, assets under management rose 77% and the credit portfolio nearly doubled to $14.6 billion as MercadoLibre issued 2.7 million credit cards (TPV +90%), but heavier provisions, longer loan durations and a higher card mix compressed NIMAL even as management says asset quality remains stable. Shopify’s Valuation Crisis Creates Opportunity in 2026 MercadoLibre (NASDAQ:MELI) opened 2026 with what executives repeatedly characterized as an investment-led quarter, highlighting accelerating growth in both commerce and fintech while acknowledging margin pressure tied to a deliberate push to scale key initiatives. During the company’s earnings call for the quarter ended March 31, 2026, EVP and CFO Martin de los Santos said net revenue rose 49% year-over-year, which he described as MercadoLibre’s strongest growth rate since the second quarter of 2022. Operating income totaled $611 million, representing a 6.9% operating margin, which he said reflected management’s choice to “invest in strategic initiatives.” → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% MarketBeat Week in Review – 03/30 - 04/03 De los Santos pointed to Brazil as a major driver of the quarter, attributing performance to MercadoLibre’s decision in recent quarters to lower the free shipping threshold in the market. He said that change has brought more buyers into the ecosystem, strengthening network effects and improving logistics efficiency. In Brazil, de los Santos reported that gross merchandise volume (GMV) grew 38% year-over-year, while items sold growth accelerated to 56%. He also said free shipping penetration reached a new rec...