On May 25, 2026, Zacks rated MercadoLibre a "Strong Sell." This rating reflects profitability concerns despite strong revenue growth.
Spending on shipping, fulfillment, and incentives to drive commerce volumes pressures margins. MercadoLibre's Q1 2026 revenue grew 49% year-over-year. However, its operating margin compressed to 6.9%.
Ongoing spending on technology, advertising, and AI-driven tools keeps operating costs elevated. Additionally, Mercado Pago's credit portfolio nearly doubled to $14.6 billion. This expansion limits future earnings visibility.
Consequently, Zacks revised its second-quarter 2026 earnings estimate downward.