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Down 33%, Is MercadoLibre a Buy After Earnings?

newsfeedback@fool.com (Matt Frankel, CFP)
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⚡ Quantum Brief
The Latin American e-commerce giant reported robust Q4 growth across all segments, including a 35% revenue jump year-over-year, driven by Mercado Pago’s fintech expansion and core marketplace strength. Shares plunged 33% from their 52-week high, including a 10% post-earnings drop, as investors focused on shrinking profit margins despite revenue gains, raising concerns about long-term profitability. Analysts highlight Mercado Pago as both a growth engine and a risk, with its rapid expansion in digital payments offset by rising operational costs and competitive pressure from regional rivals. Institutional investors like SQUADRA increased positions, adding 89,000 shares, signaling confidence in the company’s growth trajectory despite short-term volatility and margin compression. Competition and margin erosion—not slowing growth—are cited as the primary 2026 risks, with analysts debating whether the stock’s discounted valuation justifies its long-term potential.
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By Matt Frankel, CFP – Feb 27, 2026 at 1:11PM ESTMercadoLibre (MELI +1.08%) reported strong fourth-quarter growth across its business, but profitability concerns are weighing on the stock. With shares down 33% from their 52-week high, including a 10% haircut after the earnings announcement, here's what shareholders need to know. *Stock prices used were the morning prices of Feb. 26, 2026. The video was published on Feb. 27, 2026. Read NextFeb 27, 2026 •By Josh Kohn-LindquistWhy MercadoLibre Stock Dipped This WeekFeb 25, 2026 •By Will HealySQUADRA Loads Up MercadoLibre With 89,000 Shares in New PositionFeb 25, 2026 •By Lawrence NgaHas Competition Permanently Changed MercadoLibre's Economics?Feb 24, 2026 •By Lawrence NgaIs Mercado Pago a Growth Engine or a Hidden Risk in 2026?Feb 23, 2026 •By James Brumley3 Brilliant Growth Stocks to Buy Now and Hold for the Long TermFeb 23, 2026 •By Lawrence NgaMercadoLibre's Biggest 2026 Risk Isn't Growth -- It's MarginsAbout the AuthorMatt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.TMFMattFrankelX@MattFrankelCFPStocks MentionedMercadoLibreNASDAQ: MELI$1,759.76(+1.08%)+$18.88*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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