MercadoLibre Misses Earnings - Stock Up More Than 4%

On February 24, 2026, MercadoLibre Inc. reported earnings per share (EPS) of $11.03 for the quarter, falling short of analysts' expectations largely due to margin pressure from heavy investments in its platform. Revenues nonetheless reached $8.76 billion.

The company’s management emphasized ongoing investments aimed at improving the user experience across its platforms. However, intensified competition from Shopee in Brazil weighed heavily on MercadoLibre’s results, adding to its challenges in maintaining profitability.

The earnings shortfall was driven by higher operating costs as MercadoLibre continues to invest strategically in technology and customer experience enhancements to stay competitive. This has put short-term pressure on margins but aims for longer-term growth.

Brazil, the largest market in Latin America, remains a battleground where MercadoLibre faces strong competition from Shopee. This rivalry affects pricing and sales volumes, contributing to the current profit squeeze.

Despite the earnings miss, MercadoLibre’s stock price rose 4.13%, reflecting investor hope that the platform investments will pay off. Yet, technical analysis shows persistent bearish momentum with some short-term buying strength. The stock is trading near its 52-week low.

JPMorgan recently downgraded MercadoLibre from Overweight to Neutral and lowered its price target from $2,650 to $2,100, citing increased competition and margin pressures as reasons for more cautious outlooks.

For beginner investors in Latin America, MercadoLibre represents both a key growth story with long-term potential and risks due to competitive pressures and investing choices shaping near-term profitability.