MercadoLibre is set to report third-quarter results on Wednesday, after its shares fell sharply last week in a broader selloff in Brazilian stocks following Luiz Inácio Lula da Silva's reelection as president. The stock is down 16% year-to-date as profits have declined amid rising competition and heavy investment. Analysts expect revenue to grow 44.6% to $10.7 billion and EPS to rise from $8.32 to $9.27, though margins are still seen narrowing. Because the company gives no guidance, investors will focus closely on operating margin given spending on logistics, its credit card business, and competition from Amazon and Shopee. The author argues the shares may be a bargain, citing 30 straight quarters of revenue growth of 30% or more, while noting that margin improvement may not arrive until 2027.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
earningse-commerceMercadoLibreBrazil
Open a keyword to see other news on the same topic.
Related news
- MercadoLibre and Dutch Bros Have Fallen More Than 30% From Their Record Highs. Here's Why Both Are Worth Buying Now.
MercadoLibre and Dutch Bros are 37% and 49% below their record highs, respectively, even as the S&P 500 hits new peaks. MercadoLibre posted 50% revenue growth in Q2, but profitability has declined for two straight quarters as management invests to grow. Dutch Bros had 1,225 stores at the end of Q2 and aims to reach 2,029 by 2029, with Q2 revenue up 32% and same-store sales up 5.8%. Its shares fell after the market reacted poorly to its August guidance, rising coffee bean costs, and the end of its bid for a restaurant chain that would have added 65 stores. The author views both as worth buying on the dip.
- Can MercadoLibre Keep Expanding Marketplace Leadership?
MercadoLibre is strengthening its Latin American e-commerce position, with second-quarter 2026 GMV rising 44% year over year to $21.9 billion (36% on an FX-neutral basis), items sold up 45%, and unique active buyers up 26% to 89.3 million. Brazil remains a key growth driver, with FX-neutral GMV up 39% and items sold up 56%, while cross-border GMV rose 60% FX-neutral and same-day and next-day shipments increased 38% to 225 million. Weaker consumer demand in Mexico and Argentina presents challenges to growth. Its shares have fallen 0.5% over the past three months against the industry's 2.3% growth, and its forward 12-month P/E of 34.75 is above the industry average of 19.70 and Amazon's 22.53. The Zacks consensus implies 44.5% sales growth in the current fiscal year but a 3.3% decline in EPS, with the next fiscal year expecting 29% sales growth and 44.9% earnings growth.
- What Sent MercadoLibre Stock Lower?
MercadoLibre (MELI) shares fell 7.8% on Monday, October 26, 2026, while the S&P 500 rose 0.7%, with no company announcements, earnings reports or filings. The article ties the drop to a surprise Brazilian election result in which the president won a fourth term, and notes that Brazilian stocks broadly sold off, with a news report saying a Brazil ETF fell 20% that day. Four of the five peers also fell, though PayPal's 3.6% decline was the largest, while the consumer discretionary fund XLY rose 1.0%. The stock closed at $1,668.72, far below its 52-week closing high of $2,360.76, and has lost 22.3% over the past year versus a 15.3% gain for the S&P 500. The article says the credit portfolio, which reached $16.4 billion in Q2 and rose 75% year on year, is the key measure to watch ahead of Q3 2026 results expected in November.
- Brazilian Stocks Tumble as Lula Wins Surprise Fourth Term: Nu Holdings Sinks 25%, Petrobras Tumbles 21%, MercadoLibre Drops 15%
Luiz Inácio Lula da Silva won Brazil's presidential runoff for a fourth term, a result many investors had not positioned for, and Senator Flávio Bolsonaro has not conceded. Nu Holdings fell 25% to $11.30, Petrobras dropped 21% to $20.54 and MercadoLibre slid 15% to $1,545, while the iShares MSCI Brazil ETF (EWZ) lost 28% to $30.66 and the SPDR S&P 500 ETF Trust (SPY) rose 0.3% to $762.13. The article links Nu's drop to fears of higher taxes and tighter regulation on Brazilian lenders, Petrobras' to possible state intervention, fuel-price controls, taxation and dividend policy, and MercadoLibre's to Brazil being its largest market. Watch points include how quickly Lula's government outlines its fiscal repair plan, new tax measures on financial services, and MercadoLibre's quarterly report expected in early November, though the date is unconfirmed.
- Can MELI's Cross-Platform Users Unlock Outsized Profit Growth?
MercadoLibre (MELI) is strengthening profit potential by encouraging customers to use both its e-commerce marketplace and Mercado Pago fintech services. These ecosystemic users show higher shopping activity, payment volumes, assets under management and use of financial products than marketplace-only customers, and their profit contribution substantially exceeds the combined contribution of separate marketplace and fintech users. The article says Mercado Pago credit cards help keep customers engaged across both platforms, and management believes the ecosystem provides a structural competitive advantage that is hard to replicate. On valuation, the forward 12-month P/E is 30.99, above the industry average of 18.96 and Amazon's 21.85, but below its 12-month median of 34.07. Shares fell 14.4% over three months versus the industry's 15.7% decline. Consensus estimates project 44.5% sales growth for the current fiscal year but a 3.3% decline in EPS, and third-quarter sales of $10.66 billion and EPS of $9.41.
- MercadoLibre's Commerce-Fintech Flywheel Gains Strength
MercadoLibre reports growing engagement as its marketplace and Mercado Pago financial services become more connected, with ecosystemic users, who engage with both, up 37% year over year in the second quarter of 2026. These users generated 70% more gross merchandise volume and bought 55% more items per user than marketplace-only users, and their share buying across three or more categories was more than 15 percentage points higher. Total payment volume per ecosystemic user was nearly 90% higher than among fintech-only users, and Mercado Pago credit cardholders were two to three times more likely to stay ecosystemic. MELI+ subscriber growth reached 72% year over year. The article also says the stock rose 1.2% over the past three months, versus 3.1% for the industry, and trades at a forward P/E of 36.83, above the industry average of 20.81.
Related markets
Latest news
- How major US stock indexes fared Monday 11/2/2026
U.S. stocks' morning rally faded as tech and AI shares stayed shaky after last week's sell-off. The S&P 500 fell 0.5% to 7,541.40 after reaching a 1.1% gain early in the day, while the Nasdaq composite dropped 1.1% to 25,164.32 and the Dow Jones Industrial Average rose 0.4% to 51,983.98. Nvidia swung from an early gain to a loss and weighed on the S&P 500. Most Wall Street stocks still climbed, benefiting from a 7.6% drop in the price of Brent crude. Year to date, the S&P 500 is up 10.2%, the Dow 8.2%, the Nasdaq 8.3% and the Russell 2000 13.1%.
- Crypto investigators flag suspected $106M theft, $786K Solana bot drain
Blockchain investigator ZachXBT said an unidentified EU entity may have lost more than $106 million from accounts on several crypto exchanges on Sunday, with the funds withdrawn as USDC and USDT and then moved through multiple cryptocurrencies and blockchains. The attacker remains unidentified, and ZachXBT said the fund flows did not point to a link with North Korea's Lazarus Group. Separately, a wallet tied to King, a Solana arbitrage bot, may have lost about $786,000 on Monday, according to Onchain Lens, which said the funds moved through Solana wallets and were transferred to Ethereum via Mayan. King's operator has not confirmed a compromise. These incidents follow the $6.3 billion Binance hack on Oct. 29, which the FBI attributed to North Korean hackers known as TraderTraitor.
- Mystery $106 Million Crypto Theft Hits EU Entity Days After Binance Hack
An unnamed entity in the European Union is suspected of losing more than $106 million from several centralized exchange accounts on Nov. 1, according to ZachXBT, with the funds withdrawn as USDC and USDT. The attacker then swapped stablecoins for ETH, used instant exchanges, converted some funds to Monero and bridged assets across blockchains to obscure their trail. ZachXBT published 11 Ethereum addresses tied to the theft and said with “a high degree of confidence” that the attacker is not Lazarus Group, setting it apart from the $6.4 billion Binance hack, in which stablecoin issuers moved to freeze funds within minutes. It is unclear whether any funds from this case have been frozen.
- Micron Expected to Launch Massive Stock Buybacks in December. What to Know.
Micron Technology is likely to step up its share buybacks from Dec. 9, after federal CHIPS Act restrictions on repurchases expire.
- Palantir reports booming U.S. commercial revenue growth, topping government for first time
Palantir beat Wall Street's third-quarter estimates after the bell on Monday, with adjusted earnings of 44 cents per share versus 41 cents expected and revenue of $2.31 billion versus $2.18 billion. U.S. commercial revenue rose 148% to $984 million, topping U.S. government revenue of $953 million (up 96%) for the first time. Net income more than doubled to $1.13 billion. Palantir raised its full-year U.S. commercial revenue outlook to “in excess of” $3.56 billion from $3.42 billion, and projects about $2.65 billion in fourth-quarter revenue and about $8.53 billion for full-year 2026.
- Palantir earnings reveal a major AI turning point
In the third quarter, Palantir's U.S. commercial business brought in more money than its U.S. government segment. This was a key point in the company's earnings report.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.