MercadoLibre (NASDAQ:MELI) Releases Quarterly Earnings Results, Misses Expectations By $0.52 EPS

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

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 Trading Down 12.7%

MercadoLibre stock traded down $237.49 during trading hours on Friday, hitting $1,632.52. The stock had a trading volume of 2,329,550 shares, compared to its average volume of 384,435. The company has a quick ratio of 1.15, a current ratio of 1.17 and a debt-to-equity ratio of 0.68. The stock has a market cap of $82.76 billion, a price-to-earnings ratio of 43.09, a P/E/G ratio of 0.83 and a beta of 1.41. MercadoLibre has a one year low of $1,593.21 and a one year high of $2,645.22. The business’s 50 day simple moving average is $1,755.81 and its 200-day simple moving average is $1,967.33.

Analyst Upgrades and Downgrades

MELI has been the subject of several recent analyst reports. Morgan Stanley dropped their price objective on MercadoLibre from $2,800.00 to $2,600.00 and set an “overweight” rating for the company in a research report on Monday, March 9th. Scotiabank dropped their target price on MercadoLibre from $3,500.00 to $2,800.00 and set a “sector outperform” rating for the company in a research report on Thursday. JPMorgan Chase & Co. downgraded MercadoLibre from an “overweight” rating to a “neutral” rating and dropped their target price for the company from $2,650.00 to $2,100.00 in a research report on Thursday, March 12th. Jefferies Financial Group upgraded MercadoLibre from a “hold” rating to a “buy” rating and dropped their target price for the company from $2,800.00 to $2,600.00 in a research report on Tuesday, April 7th. Finally, Raymond James Financial set a $2,000.00 target price on MercadoLibre in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $2,465.33.

Hedge Funds Weigh In On MercadoLibre

A number of hedge funds have recently made changes to their positions in MELI. Transamerica Financial Advisors LLC bought a new position in shares of MercadoLibre during the fourth quarter worth about $26,000. Darwin Wealth Management LLC bought a new position in shares of MercadoLibre during the second quarter worth about $29,000. Caitong International Asset Management Co. Ltd bought a new position in shares of MercadoLibre during the third quarter worth about $35,000. Jessup Wealth Management Inc bought a new position in shares of MercadoLibre during the fourth quarter worth about $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 worth $58,000 after acquiring an additional 13 shares during the last quarter. 87.62% of the stock is currently owned by institutional investors.

Key MercadoLibre News

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.