MercadoLibre (NASDAQ:MELI) Sets New 52-Week Low on Disappointing Earnings

Key Points

• MercadoLibre shares fell to a new 52-week low after earnings disappointed, reaching $1,492.35 versus the prior close of $1,739.88.
• Quarterly EPS was $8.83, below the $9.27 consensus, while revenue of $10.75 billion topped estimates and rose 45.1% year over year.
• Some analysts lowered price targets, though the stock retained a “Moderate Buy” consensus rating and an average target of $2,230.

Shares of MercadoLibre, Inc. (NASDAQ:MELI - Get Free Report) hit a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $1,492.35 and last traded at $1,497.8580, with a volume of 553,940 shares changing hands. The stock had previously closed at $1,739.88.

The company reported $8.83 EPS for the quarter, missing analysts' consensus estimates of $9.27 by ($0.44). The business had revenue of $10.75 billion during the quarter, compared to the consensus estimate of $10.69 billion. MercadoLibre had a net margin of 5.30% and a return on equity of 26.54%. The firm's revenue was up 45.1% on a year-over-year basis. During the same period in the previous year, the business posted $8.32 EPS.

Trending Headlines about MercadoLibre

Here are the key news stories impacting MercadoLibre this week:

• Positive Sentiment: Third-quarter revenue and financial income rose 45% year over year to $10.75 billion, topping estimates, while FX-neutral revenue growth was 41%. The results reflect broad-based growth and continued fintech expansion. Q3 2026 earnings call highlights
• Neutral Sentiment: BTIG Research cut its price target to $2,050 from $2,150 and Cantor Fitzgerald lowered its target to $2,000 from $2,200, but both kept positive ratings: Buy and Overweight, respectively. BTIG Research ratings Cantor Fitzgerald ratings
• Negative Sentiment: EPS of $8.83 missed the $9.27 consensus estimate. Operating margin was 6.3% and edged lower sequentially as MercadoLibre invested in shipping, fulfillment capacity, marketing and technology; currency-neutral growth has also slowed for several quarters. Reuters earnings coverage

Analysts Set New Price Targets

Several research analysts recently commented on MELI shares. JPMorgan Chase & Co. raised their price target on shares of MercadoLibre from $1,900.00 to $2,150.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. BTIG Research cut their target price on MercadoLibre from $2,150.00 to $2,050.00 and set a "buy" rating on the stock in a research note on Thursday. Raymond James Financial reiterated a "strong-buy" rating on shares of MercadoLibre in a report on Thursday. New Street Research started coverage on shares of MercadoLibre in a research note on Wednesday, September 23rd. They set a "buy" rating and a $2,450.00 price target on the stock. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of MercadoLibre in a report on Tuesday, September 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, MercadoLibre presently has an average rating of "Moderate Buy" and a consensus target price of $2,230.00.

Hedge Funds Weigh In On MercadoLibre

Hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in shares of MercadoLibre in the second quarter valued at approximately $2,246,015,000. Janus Henderson Group PLC raised its holdings in shares of MercadoLibre by 1.7% in the 1st quarter. Janus Henderson Group PLC now owns 614,238 shares of the company's stock worth $1,062,019,000 after purchasing an additional 10,142 shares during the period. Linonia Partnership LP lifted its position in MercadoLibre by 325.1% during the second quarter. Linonia Partnership LP now owns 553,788 shares of the company's stock valued at $939,994,000 after buying an additional 423,527 shares in the last quarter. Jupiter Topco LLC acquired a new position in shares of MercadoLibre during the 2nd quarter valued at $917,123,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of MercadoLibre by 7.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 533,816 shares of the company's stock worth $906,094,000 after buying an additional 38,871 shares during the period. 87.62% of the stock is owned by hedge funds and other institutional investors.

MercadoLibre Stock Performance

The stock has a market cap of $75.88 billion, a PE ratio of 40.71, a PEG ratio of 1.17 and a beta of 1.42. The stock has a fifty day simple moving average of $1,824.83 and a two-hundred day simple moving average of $1,809.90. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.10 and a current ratio of 1.12.

MercadoLibre Company Profile

MercadoLibre, Inc is a technology company that operates an online commerce and financial services ecosystem across Latin America. Founded in 1999 by Marcos Galperin, the company initially developed an online marketplace and has expanded into a broad platform connecting buyers and sellers with businesses and consumers.

Its commerce operations include the MercadoLibre marketplace, where users can purchase and sell products across numerous categories. The company also offers supporting services such as Mercado Envíos for shipping and logistics, Mercado Ads for digital advertising, and tools for merchants to manage their online businesses.

MercadoLibre's financial technology business is centered on Mercado Pago, which provides digital payment processing, online checkout, money transfer and account services.

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