MercadoLibre shares have fallen 29% as the Latin American e-commerce and fintech giant reported a 13% decline in net income to $883 million in the first half of 2026, even as revenue surged 50% to $19 billion. The profit drop reflects margin pressure from competitors like Amazon and rising loan losses at its Mercado Pago digital payments unit, which has expanded into lending. The company is using AI to assess customer finances and has lowered margins to defend its market position, betting that faster revenue growth will eventually restore profit growth and lift the stock.
