New York, Feb 25, 2026, 10:21 (EST) — Regular session
- MercadoLibre slid roughly 9% in early trading, hitting a new 52-week low.
- Profit for Q4 came in below estimates, margins pressured by higher spending and credit build-out.
- Coming up: management’s remarks during March conferences, followed by Q1 results slated for May 7.
MercadoLibre Inc shares tumbled roughly 9% to $1,748.10 on Wednesday. The stock touched $1,665 during the session, setting a fresh 52-week low.
This drop hits right in the heart of an ongoing debate over the stock: just how much more investment the company can funnel through its platform before shareholders push back, insisting on more transparency—and results—when it comes to operating profit.
This is significant: MercadoLibre’s payments unit, Mercado Pago, now runs a sizable lending operation. Rapid credit growth tends to push provisions — the set-asides for possible loan losses — up just as quickly.
MercadoLibre posted net income of $559 million for the October-December stretch late Tuesday, falling short of the $587 million analysts expected, even as revenue surged 45% to roughly $8.8 billion. EBIT climbed to $889 million, but the operating margin slipped to 10.1%, down from 13.5% a year earlier. The company’s credit portfolio ballooned 90% to $12.5 billion, with the 15-to-90 day delinquency rate ticking up to 7.6%. Investor relations chief Leandro Cuccioli told Reuters that narrowing margins were intentional, describing online commerce in the region as “minute 15 of the first half.” Reuters
Part of the outlay targets faster delivery and expanding free shipping options, along with stepping up first-party (1P) retail—MercadoLibre moving inventory itself, rather than sticking to its classic marketplace role.
The company released both its fourth-quarter and full-year results on its investor relations site, it said in a Form 8-K dated Feb. 24. The materials were also furnished as an exhibit.
MercadoLibre’s latest shareholder letter, filed with regulators, shows total payment volume came in at $83.7 billion, a year-on-year jump of 42.1%. Gross merchandise volume hit $19.9 billion—up 36.8%. The company highlighted a newly reduced free-shipping threshold in Brazil, now covering items from 19 reais. Nearly 3 million credit cards went out to customers during the quarter. All growth numbers reflect “FX-neutral” calculations, which exclude currency impacts. SEC
Cantor Fitzgerald has lowered its price target on MercadoLibre to $2,400 from $2,750 but stuck with its “overweight” call, according to MarketBeat. Wedbush and BTIG also took down their targets following the numbers, the report said. MarketBeat
Still, there’s a straightforward risk here. Should logistics and marketing expenses remain stubbornly high, and if credit quality slips as the portfolio expands, margins could take another hit.
The calendar points to two key dates for investors: management turns up at a Morgan Stanley event in New York on March 24, then comes the provisional first-quarter results drop set for May 7. Markets will be parsing every word for shifts on credit health, shipping support, or spending tempo.
