moneyheap
MELI · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Mercado Libre, Inc (MELI) stock moving?
MercadoLibre reported Q3 2026 results on Nov 4 with revenue of $10.75B, up 45% YoY (41% FX-neutral), and total payment volume up 53% YoY. Profitability was weaker: EPS of $8.83 missed the $9.27 estimate, and income from operations fell 6% YoY to $676M, a 6.3% margin, as the company spent on free shipping, new fulfillment capacity and affiliate marketing. The stock dropped about 12% on Nov 5 on heavy volume of 2.18M shares, and it has kept sliding to $1,490.24 on Nov 10, about 14% below the Nov 4 close. Analysts cut price targets in a cluster from Nov 5 to Nov 9, including Scotiabank at $2,300, Cantor at $2,000, BTIG at $2,050 and JPMorgan at $1,850 with a Neutral rating. Targets remain above the current price, but the cuts and the margin pressure weigh on sentiment. A Mercado Pago crypto transfer issue on Nov 7 adds a small operational risk. Positives include a Netflix advertising partnership set for 2027 and ecosystem user growth of 33% YoY. The price is trading near its recent lows with no sign of a rebound yet.
News behind the analysis
- JP Morgan Maintains Neutral on MercadoLibre, Lowers Price Target to $1850JPMorgan reaffirmed a Neutral rating on MercadoLibre and cut its price target to $1,850. The stock closed at $1,490.24 on Nov 10.
- Mercado Pago Reports Crypto Transfer InstabilityMercado Pago found instability in crypto asset transfers linked to a third-party provider and took precautionary measures. The issue adds a near-term operational risk to the fintech unit.
- Scotiabank Maintains Sector Outperform on MercadoLibre, Lowers Price Target to $2300Scotiabank kept its Sector Outperform rating but lowered its price target to $2,300 after Q3 results.
- These Analysts Cut Their Forecasts On MercadoLibre Following Q3 ResultsMercadoLibre beat Q3 revenue estimates but missed on EPS, and analysts cut price targets despite a bullish e-commerce outlook. Shares fell after the report.
- Why Is MercadoLibre Stock Falling Thursday?MercadoLibre stock fell after mixed Q3 results, with revenue beating estimates while shipping costs pressured EPS.
- Cantor Fitzgerald Maintains Overweight on MercadoLibre, Lowers Price Target to $2000Cantor Fitzgerald kept its Overweight rating and cut its price target to $2,000.
- BTIG Maintains MercadoLibre at Buy, Lowers Price Target to $2050BTIG reiterated its Buy rating and lowered its price target from $2,150 to $2,050.
- MercadoLibre Reports Third Quarter 2026 Financial ResultsQ3 2026 revenue was $10.75B, up 45% YoY, while EPS missed expectations. Income from operations fell 6% YoY to $676M, with a 6.3% margin.
- MercadoLibre Q3 EPS $8.83 Misses $9.27 Estimate, Sales $10.750B Beat $10.663B EstimateMercadoLibre posted Q3 EPS of $8.83 against a $9.27 estimate, while sales of $10.750B beat the $10.663B estimate.
About Mercado Libre, Inc
MercadoLibre runs Latin America's largest online marketplace and, through Mercado Pago, one of the region's biggest digital payments and lending platforms, with Brazil, Mexico and Argentina as its main markets. What sets it apart is that it owns the whole system: shopping, its own delivery network (Mercado Envios), advertising, and banking-style services like payments, credit cards and loans. Quarterly revenue now tops roughly $10 billion, after growing about 45% year over year in Q3 2026.
How it makes money
The money comes from two roughly equal halves. Commerce revenue comes from fees on marketplace sales, shipping charges, and a fast-growing ad business. Fintech revenue comes from payment processing fees and from interest and fees on Mercado Pago loans and credit cards. The loan book is roughly $16 billion and has been growing about 60–75% a year. Operating margins are thin, about 6–7% in 2026, partly because the company spends heavily on free shipping, logistics and credit growth.
What usually moves MELI
- Growth in Brazil and Mexico marketplace sales
- Credit portfolio growth and loan losses
- Margin pressure from shipping subsidies and competition
- Latin American currency swings and Argentine inflation
- Quarterly earnings versus analyst expectations