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Mercadolibre
(NASDAQ:MELI)
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Rating:75Outperform
Price Target:
$2,135.00
▲(6.91% Upside)
Action:Reiterated
Date:09/14/26
The score is driven primarily by strong financial performance—exceptional cash generation and sustained revenue scale-up—tempered by margin compression and leverage. Earnings call insights support continued growth and ecosystem momentum but reinforce near-term profitability and credit-quality risks. Technicals are mixed (longer-term support but softer near-term momentum), and valuation is a headwind with a high P/E and no dividend yield support.
Positive Factors
Integrated ecosystem and network effects
The combination of marketplace, payments, logistics, and financial services creates a reinforcing ecosystem. More users and merchants can increase activity across several revenue streams, while integrated services strengthen engagement, monetization opportunities, and competitive positioning over the next several quarters.
Negative Factors
Margin compression
The sustained decline in operating and net margins shows that rapid growth is currently requiring meaningful economic investment. If reinvestment, logistics, device, and technology costs remain elevated, weaker profitability could limit earnings conversion and reduce the benefit of continued revenue expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated ecosystem and network effects
The combination of marketplace, payments, logistics, and financial services creates a reinforcing ecosystem. More users and merchants can increase activity across several revenue streams, while integrated services strengthen engagement, monetization opportunities, and competitive positioning over the next several quarters.
Read all positive factors
Mercadolibre Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyMercadolibre (MELI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.45B
Dividend Yield0.19%
Average Volume (3M)532.40K
Price to Earnings (P/E)47.0
Beta (1Y)0.89
Revenue Growth46.01%
EPS Growth-9.25%
CountryUS
Employees123,670
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)36.75
Shares Outstanding50,696,800
10 Day Avg. Volume832,166
30 Day Avg. Volume532,402
Financial Highlights & Ratios
PEG Ratio11.34
Price to Book (P/B)15.13
Price to Sales (P/S)3.53
P/FCF Ratio9.48
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$2,241.25Price Target Upside12.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)37.7
Revenue Forecast (FY)$41.62B
Mercadolibre Business Overview & Revenue Model
Company Description
MercadoLibre, Inc. operates as a prominent provider of digital commerce platforms throughout Latin America. Its primary service, the Mercado Libre Marketplace, is an automated online system allowing businesses, independent vendors, and private ind...
How the Company Makes Money
MercadoLibre primarily makes money through a combination of commerce (marketplace) and fintech revenues. (1) Marketplace and commerce services: The company earns fees tied to transactions on its e-commerce marketplace, typically charging sellers f...
Mercadolibre Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlighted very strong top‑line growth, rapid scaling of the credit book, robust advertising and AI‑driven monetization, meaningful engagement gains (especially in Brazil) and positive cash generation despite heavy investments. Offsetting items include significant margin compression (550 bps YoY) due to deliberate reinvestment, device and logistics cost pressures (notably in Mexico), a pickup in >90‑day NPLs in some cohorts and higher AI/LLM costs. Management framed margin declines as intentional to drive long‑term engagement and profitability, emphasized disciplined risk management on credit, and reiterated confidence in the ecosystem flywheel.Positive Updates
Record Net Revenue
Net revenue surpassed $10.0 billion for the first time, growing 50% year‑on‑year.
Negative Updates
EBIT Margin Compression
Income from operations was $683 million with an EBIT margin of 6.7%, down ~550 basis points year‑on‑year driven by deliberate reinvestment into Commerce and other strategic areas.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Net Revenue
Net revenue surpassed $10.0 billion for the first time, growing 50% year‑on‑year.
Read all positive updates
Company Guidance
Management reiterated they will keep prioritizing long‑term, engagement‑driven investments while remaining disciplined: Q2 net revenue topped $10.0B (+50% YoY) with income from operations of $683M and an EBIT margin of 6.7% (down 550 bps YoY, broadly stable sequentially); adjusted free cash flow was $214M after $441M of capex and $2.1B invested in the credit book, which grew to $16.4B (+75% YoY) with 15–90 day NPLs at 7.0% (4.6% for credit card) and NIMAL improving to 21% (from 18% in Q1). They signaled continued investment in Brazil commerce (items per buyer +19% YoY, items growth +56%, conversion +1.1 p.p., seller growth +29%, frequency +20%), in advertising and CBT (ads ~+70% YoY, ad‑orchestrator usage +66%, CBT GMV ~+60% YoY, China fulfillment volume +170% q/q) and accelerated card issuance (2.6M cards this quarter vs 1.6M a year ago), while monitoring margin headwinds (acquiring device costs, shipping/energy) and retaining flexibility to adjust pricing or investment intensity as economics require.Mercadolibre Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
70
Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.18B | 28.89B | 20.78B | 15.11B | 10.78B | 7.07B |
| Gross Profit | 15.01B | 12.86B | 9.58B | 7.59B | 5.20B | 3.00B |
| EBITDA | 3.10B | 3.56B | 3.21B | 2.25B | 1.32B | 674.00M |
| Net Income | 1.86B | 2.00B | 1.91B | 987.00M | 482.00M | 83.00M |
Balance Sheet | ||||||
| Total Assets | 51.36B | 42.67B | 25.20B | 17.61B | 13.74B | 10.10B |
| Cash, Cash Equivalents and Short-Term Investments | 5.73B | 6.30B | 3.75B | 3.75B | 3.03B | 2.79B |
| Total Debt | 13.18B | 11.39B | 6.85B | 5.33B | 5.41B | 3.98B |
| Total Liabilities | 43.52B | 35.92B | 20.84B | 14.54B | 11.91B | 8.57B |
| Stockholders Equity | 7.83B | 6.75B | 4.35B | 3.07B | 1.83B | 1.53B |
Cash Flow | ||||||
| Free Cash Flow | 12.46B | 10.77B | 7.06B | 4.63B | 2.48B | 355.55M |
| Operating Cash Flow | 13.16B | 12.12B | 7.92B | 5.14B | 2.94B | 965.04M |
| Investing Cash Flow | -6.93B | -6.18B | -8.29B | -3.45B | -3.87B | -1.60B |
| Financing Cash Flow | 2.93B | 2.90B | 1.96B | -267.00M | 916.00M | 1.93B |
Mercadolibre Technical Analysis
Negative
1997.00
Price Trends
1866.47
Negative
1776.91
Negative
1842.08
Negative
Market Momentum
-41.70
Positive
34.71
Neutral
20.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MELI, the sentiment is Negative. The current price of 1997 is above the 20-day moving average (MA) of 1855.88, above the 50-day MA of 1866.47, and above the 200-day MA of 1842.08, indicating a bearish trend. The MACD of -41.70 indicates Positive momentum. The RSI at 34.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MELI.
Mercadolibre Risk Analysis
Mercadolibre disclosed 1 risk factors in its most recent earnings report. Mercadolibre reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mercadolibre Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $60.40B | 35.93 | 13.51% | 10.18% | 43.06% | 32.91% | |
77 Outperform | $110.31B | 7.84 | 21.97% | ― | 13.53% | -2.42% | |
75 Outperform | $87.45B | 47.03 | 26.54% | 0.19% | 46.01% | -9.25% | |
73 Outperform | $2.66T | 19.77 | 30.50% | ― | 15.77% | 88.63% | |
72 Outperform | $46.82B | 21.47 | 48.28% | 1.15% | 15.18% | 7.28% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $269.36B | 23.55 | 7.04% | 0.98% | 7.76% | -49.08% |
* Consumer Cyclical Sector Average
MELI
Mercadolibre
1,728.53
-448.38
-20.60%
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Mercadolibre Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
MercadoLibre Boosts Long-Term Funding with New Bond Offering
Positive
Sep 14, 2026
On September 14, 2026, MercadoLibre closed an underwritten public offering of $1 billion aggregate principal amount of 5.850% notes due 2036, issued under its existing 2021 indenture and a new fifth supplemental indenture. The notes are guaranteed...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
MercadoLibre announces new 10-year investment-grade notes issuance
Positive
Sep 10, 2026
On September 9, 2026, MercadoLibre and several Latin American subsidiaries entered into an underwriting agreement with a syndicate of global banks for the sale of $1,000 million aggregate principal amount of 5.850% senior unsecured notes due 2036,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.