MercadoLibre reported record revenue, with second-quarter revenue up 49.8% to $10.17 billion, but operating margin fell 550 bps to 6.7% and operating income dropped 17% to $683 million as the company spent on lower free-shipping thresholds, credit cards and AI tools. Net debt rose to $6.4 billion from $4.7 billion, and the stock is down 22.78% over the past year. Susquehanna and Barclays have $2,500 price targets, roughly 49.8% above the $1,668.72 share price, citing Mercado Pago's scale, its logistics advantage and advertising revenue that grew 73%. Earnings estimates are sliding, with the 2026 EPS consensus at $38.2807 versus $39.9564 ninety days earlier and 12 downward revisions against 2 upward over the past 30 days. The article says the upside case depends on operating margin recovering from the current 6.7%.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: MercadoLibre Cratered by 20% Last Year: Two Wall Street Pros Agree It’s Going to Rise 50% Soon
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