Wall Street analysts lowered price targets for MercadoLibre on May 13. JPMorgan cut its price target to $1,900 from $2,100. Citigroup downgraded the stock to Neutral from Buy. These actions followed a Q1 2026 earnings report that paired strong revenue growth with declining net income.
MercadoLibre is currently prioritizing long-term growth over short-term profitability. The company is funding heavy logistics investments and expanding free shipping in Brazil. Higher loan-loss provisions in the credit division are also impacting the bottom line.
Management lowered the 2026 EBIT margin guidance to 7% from a previous 9% forecast. The stock price fell significantly as investors reassessed the trade-off between sales growth and earnings pressure.