**MercadoLibre (MELI) Faces Investment Challenges Amid Revenue Growth**
MercadoLibre, the Latin American e-commerce giant, reported a 49% year-over-year revenue growth of $8.85 billion for Q1 2026; however, significant concerns regarding its financial health have emerged. The Zacks Consensus Estimate for MELI’s 2026 earnings has been revised downward by 14.4% in the last month to $40.97 per share, signaling market pessimism about the company’s growth trajectory.
The company’s operating margin fell 600 basis points to 6.9%, with investments in logistics and expansion strategies pressuring profitability. Furthermore, MELI’s credit portfolio nearly doubled year-over-year to $14.6 billion, adding risks related to provisioning costs amid a backdrop of economic uncertainty in Latin America. Year-to-date, MELI’s shares have declined by 19.9%, underperforming the broader sector and raising concerns about sustainable growth and margin recovery.
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