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Slide 1 / 9 • MercadoLibre • MELI

MELI dropped -15.6%

Revenue beat. EPS miss. Margin reset.

TriggerQ1 2026Growth vs margins
Value removed~$14.8BEquity reset
VerdictResearchNot blind dip-buy
-15.6%

Is MELI a buy after the big move?

Before$1,870.01May 7 close
After$1,578.78Price used
FinanceToGo • Educational only, not financial advice
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What happened?

Growth was strong. Margins were the problem.

Revenue+49%Beat expectations
EPS$8.23Down YoY
ReactionFast resetPremium multiple questioned

Move timeline

  1. May 7: MELI closed at $1,870.01 before the earnings reaction.
  2. May 8: Q1 2026 results showed revenue strength and margin pressure.
  3. May 12: MELI closed near $1,578.78 after the selloff.
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What does MercadoLibre do?

Latin America commerce + fintech platform.

MarketplaceCommerceBuyers and sellers
PaymentsMercado PagoDigital finance
CreditFintechHigher risk, higher upside
LogisticsFulfillmentMoat-building spend
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Headline versus reality

The headline was great. The income statement was messier.

Headline+49%Revenue growth
What happenedEPS missProfit did not keep up
Numbers6.9%Operating margin
QuestionDip-buy?Or thesis reset?
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Numbers check

Revenue accelerated. Earnings compressed.

Revenue$8.85B+49%
EPS$8.23-15.5%
Net income$417M-15.6%
Operating income$611MDown from $763M
Operating margin6.9%Down from ~12.9%
Platform scaleTPV + GMVStill powerful
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Price chart

Fast reset, not a slow grind.

Before$1,870.01Pre-move
After$1,578.78Post-move
QuestionValue?Or margin warning?

Price chart

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Valuation after the move

Fairer, not obviously cheap.

Research zoneBelow $1,450–$1,550Better margin of safety
Fair value range$1,550–$1,950Wide growth range
Post-drop price$1,578.78Near lower end
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Is it a buy after the move?

Worth researching — not a blind dip-buy.

What would make it more interesting

Pullback below the research zone. Margins stabilize. Credit quality stays controlled.

What would make it worse

Another EPS decline. Credit losses rise. Growth slows while spending stays high.

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What to watch next

The drop creates interest. The next quarters decide conviction.

Final answer

GrowthRealRevenue engine intact
ProblemMarginsProfitability reset
Best labelResearchWorth researching after the drop
Educational only • not financial advice