Quick Read – MercadoLibre (MELI) reported Q1 2026 revenue of $8.85B, up 49% YoY and beating consensus, but operating income fell 20% to $611M as the company invested heavily in credit cards, first-party commerce, and logistics, compressing operating margin to 6.9%.
Brazil unit economics accelerated with 55% YoY revenue growth, 56% jump in items sold, and credit card portfolio doubling to $6.6B with 2.7M cards issued. – MercadoLibre is deliberately sacrificing near-term profitability to capture market share in underpenerated Latin American e-commerce and fintech, where the region averages just 7 online purchases per year versus 41 in the US. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and MercadoLibre wasn’t one of them
Get them here FREE. MercadoLibre (NASDAQ:MELI) just reported a blockbuster top line and a deliberately compressed margin profile, and the market is still digesting what that trade-off means. Our 24/7 Wall St. price target for MercadoLibre is $2,177.44, implying 33% upside from $1,632.52.
The model rates MELI a buy with 90% confidence, anchored by 92% bullish analyst consensus and accelerating Brazil unit economics. 24/7 Wall St. Price Target Summary A Reset Quarter With Accelerating Engagement MELI is down 17.33% over the past year and 7.16% year to date. Q1 2026, reported May 7, 2026, delivered revenue of $8.85 billion, up 49.03% YoY and topping consensus expectations.