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Mercadolibre
(NASDAQ:MELI)
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Rating:71Outperform
Price Target:
$2,012.00
▲(0.75% Upside)
Action:Reiterated
Date:08/10/26
MELI scores well on fundamentals, led by powerful revenue growth and exceptional free-cash-flow generation. The score is held back by margin compression and leverage/credit-risk sensitivities highlighted in the earnings call, while technicals are mixed-to-neutral and valuation is relatively expensive (P/E ~49.5 with no dividend yield provided).
Positive Factors
Revenue Scale and Growth
Sustained multi-year top-line expansion to $35.2B TTM demonstrates durable market share gains across Latin America. Large, growing GMV improves bargaining power with sellers and suppliers, supports network effects, and underpins long-term opportunity to monetize users and scale unit economics.
Negative Factors
Margin Compression from Reinvestment
Deliberate reinvestment drove a sustained decline in operating margins, narrowing profitability buffers. If investments (logistics, incentives, device subsidies, AI) persist, margins may stay subdued, increasing sensitivity to cost inflation or a slowdown in revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scale and Growth
Sustained multi-year top-line expansion to $35.2B TTM demonstrates durable market share gains across Latin America. Large, growing GMV improves bargaining power with sellers and suppliers, supports network effects, and underpins long-term opportunity to monetize users and scale unit economics.
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.
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The Fly
The FlyMercadolibre (MELI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.88B
Dividend YieldN/A
Average Volume (3M)399.49K
Price to Earnings (P/E)52.5
Beta (1Y)0.90
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. Volume347,345
30 Day Avg. Volume399,486
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
$2,248.00Price Target Upside12.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)38.32
Revenue Forecast (FY)$41.53B
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) services and fintech (payments and financial services), supported by logistics and advertising-related monetization.
1) Marketplace (Commerce) revenue
- Transactio...
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
Positive
1997.00
Price Trends
1815.21
Positive
1767.22
Positive
1863.12
Positive
Market Momentum
35.04
Negative
56.53
Neutral
79.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MELI, the sentiment is Positive. The current price of 1997 is above the 20-day moving average (MA) of 1882.50, above the 50-day MA of 1815.21, and above the 200-day MA of 1863.12, indicating a bullish trend. The MACD of 35.04 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 79.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.81T | 20.34 | 30.50% | ― | 15.77% | 88.63% | |
78 Outperform | $72.96B | 43.66 | 13.51% | ― | 43.06% | 32.91% | |
76 Outperform | $123.47B | 11.35 | 21.26% | ― | 13.53% | -2.42% | |
72 Outperform | $46.37B | 20.70 | 48.28% | 1.10% | 15.18% | 7.28% | |
71 Outperform | $98.88B | 52.54 | 26.54% | ― | 46.01% | -9.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $295.75B | 25.57 | 7.04% | 0.94% | 7.76% | -49.08% |
* Consumer Cyclical Sector Average
MELI
Mercadolibre
1,930.75
-542.16
-21.92%
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PDD
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Mercadolibre Corporate Events
Executive/Board ChangesShareholder Meetings
MercadoLibre Stockholders Approve Directors, Pay and Auditor
Positive
Jun 12, 2026
MercadoLibre, Inc. held its Annual Meeting of Stockholders on June 9, 2026, with 42,917,786 of 50,697,182 eligible shares represented, establishing a quorum to conduct business. Shareholders voted on the election of Class I directors, an advisory ...
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.