MELI is trading at $1513 (-4.17%) as the stock continues to face pressure following its early May first-quarter earnings report. While revenue growth was strong, investors are focused on shrinking profitability.
- The main driver of the decline is concern over margin compression resulting from the company's heavy investments in its credit business and logistics, including expanded free shipping in Brazil.
- In its Q1 2026 report, MercadoLibre reported strong revenue of $8.8 billion, but missed analyst estimates for earnings per share (EPS), reporting $8.23.
- The negative investor reaction has been ongoing since the report, with the current drop extending a multi-day selloff.