MercadoLibre, Inc. (NASDAQ:MELI) is included among the 10 Best Stocks to Buy Now for a $1 Million Portfolio.
On May 11, Morgan Stanley lowered its price recommendation on MercadoLibre, Inc. (NASDAQ:MELI) to $2,450 from $2,600. It reiterated an Overweight rating on the shares. The firm said it had “again underestimated MELI’s investment scope,” though it also noted that GMV, credit growth, and the company’s capabilities had expanded beyond expectations. The analyst added that 2026 is “shaping up as a lost year for EBIT,” but said the company still appears positioned for outsized revenue growth and future margin recovery.
During MercadoLibre’s Q1 2026 earnings call, VP & CFO Martin de Los Santos pointed to accelerating commerce growth in Brazil and improving logistics efficiency. He said Brazil’s GMV increased 38% year over year, while growth in items sold accelerated to 56%. De Los Santos also noted that cost per shipment declined 17% year over year in local currency terms, adding that stronger demand was helping lower costs.
He also highlighted the scale of MercadoLibre’s fintech operations and continued expansion in its credit business. According to De Los Santos, Mercado Pago’s monthly active users rose 29% from a year earlier, while assets under management increased 77%. He further stated that the company’s credit portfolio nearly doubled to $14.6 billion. In addition, he said MercadoLibre issued 2.7 million credit cards during the quarter, while credit card TPV climbed 90% year over year.
Discussing profitability and investments, De Los Santos said the company generated $611 million in operating income, representing a 6.9% margin. He added that the margin compression reflected a deliberate decision to continue investing in strategic initiatives.
MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguay-based e-commerce company with Argentine roots. Its platforms support retail and wholesale commerce through online services designed to help users complete commercial transactions more efficiently.
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