Mercado Libre

MELI

Market cap $88.3B

MercadoLibre (MELI +0.68%) reported strong fourth-quarter growth across its business, but profitability concerns are weighing on the stock. With shares down 33% from their 52-week high, including a 10% haircut after the earnings announcement, here's what shareholders need to know.

MercadoLibre's revenue spiked 45%, but its profitability declined, prompting this week's decline. The company saw strong growth across all of its business units.

MercadoLibre's NASDAQ: MELI Q4 results and 2026 outlook are reason enough to buy this stock. The company is growing, outperforming peers, and has only reached 50% of its anticipated penetration.

MELI's fintech surge and Latin America dominance outshine W's rebound, positioning the e-commerce leader for stronger long-term upside.

MercadoLibre delivered 45% USD revenue growth and record user additions, accelerating its competitive moat through strategic investments. Short-term margin compression from growth initiatives has pressured MELI's stock price, but valuation is now exceptionally attractive versus historical multiples. Management prioritizes long-term value over near-term margin guidance, creating investor uncertainty but reinforcing MELI's strategic positioning.

Nearly two months into 2026, some of the early contenders among top-performing stocks have already zipped past the broader market. This is not especially difficult to do, seeing that the S&P 500 is only up less than 1% year-to-date (YTD), but big rallies from leaders like Valaris PLC NYSE: VAL (up 80% since the start of the year) would impress in even more of a boom period for the broader market.

MercadoLibre Inc (NASDAQ: MELI) shares are trading lower on Wednesday after it reported fourth‑quarter earnings that fell short of expectations, even though revenue came in ahead of estimates.

Acquired 89,656 shares; estimated trade value $180.59 million (based on quarterly average pricing). Quarter-end position value increased by $180.59 million, reflecting both share purchase and price movement.

MELI's Q4 shows explosive growth in payments, ads and credit, but margin pressure and a profit miss temper the strong top-line beat.

MercadoLibre reported strong top-line growth, but its profits fell. The company is investing heavily in the future, lowering the threshold for free shipping and bringing more customers into its ecosystem -- a strategy that has served MercadoLibre well.