MercadoLibre Inc.MELI
▼ NegativeCapitalrelevance
Operating income fell 20% and operating margin dropped from 12.9% to 6.9%, indicating declining profitability.
Impact on stocks 1
Digital Finance & Tokenization
MercadoLibre Inc.MercadoLibre stock fell 16% in the first half of 2026, according to data from S&P Global Market Intelligence, as declining profits weighed on shares despite strong revenue growth. Total revenue increased 49% year over year in the first quarter, with e-commerce gross merchandise volume up 42% and fintech total payment volume up 50%. However, operating income fell 20% and operating margin dropped from 12.9% to 6.9%, as the company invests heavily in long-term opportunities across Latin America. Management highlighted the region's low e-commerce penetration and underdeveloped credit markets as reasons to prioritize investment over near-term profitability. The stock currently trades at 47 times trailing 12-month earnings.
MercadoLibre Inc.Operating income fell 20% and operating margin dropped from 12.9% to 6.9%, indicating declining profitability.