Pomegra
MercadoLibre Stock Falls 12% After Earnings Miss
Why did MercadoLibre stock fall 12%?
MercadoLibre (MELI) stock fell 12% on Thursday to about $1,530 after an earnings miss, as higher shipping and marketing spending cut its operating margin to 6.3%.
Key numbers
| Adjusted EPS | $8.83vs $9.34 estimate (some sources: $9.27) |
|---|---|
| Net revenue | $10.75B+45% YoY |
| Operating margin | 6.3%below ~7% expected |
| Gross merchandise volume | $23B+38% YoY |
| Thursday intraday low | $1,492.35-14% from prior close |
| After-hours move Wednesday | -7.8%to about $1,600 |
What happened
MercadoLibre (MELI) stock fell 12% on Thursday to about $1,530 after an earnings miss, as higher shipping and marketing spending cut its operating margin to 6.3%. Sales rose 45% to $10.75 billion, above forecasts, but profit per share (EPS) of $8.83 missed the $9.34 analysts expected. Operating margin, the share of sales left as profit from running the business, fell to 6.3% as it added warehouse space, free shipping and Brazil marketing. Shares hit a 52-week low of $1,492.35, down as much as 14%, during the session.
Why it matters
MercadoLibre, a leading Latin American online marketplace and payments firm, is spending more on delivery and warehouses now, which cuts its profit even though sales are growing fast. Investors had expected profit to hold up better, so the stock reset lower. For shoppers, the free shipping and faster delivery are the payoff; for shareholders, the open question is when that spending turns into higher profit.
Who this affects
- MarketbearishMedium impact
- Growth-stock investors saw a sharp one-day loss in MercadoLibre.
- CompanybearishHigh impact
- Shareholders face lower profit margins and a stock near 52-week lows.
- CompetitorsmixedLow impact
- Rivals Sea and Coupang also slid, though less sharply.
- IndustryneutralMedium impact
- Free shipping and fast delivery keep raising costs for online retailers.
MercadoLibre vs Sea Limited, Coupang, Amazon
How we got here
MercadoLibre reports Q3: $10.75B revenue, $8.83 EPS, 6.3% operating margin.
Shares fall about 8% in after-hours trading on the profit miss.
Stock drops as much as 14% to a 52-week low of $1,492.35.
Shares end the day down about 12% near $1,530.
What to watch
- Holiday-season sales and whether new warehouse capacity lifts the 6.3% operating marginQ4 2026
- Analyst price-target changes after the drop; MarketBeat shows an average target of $2,2302026-11-09
Educational content only. Not investment advice.
More briefsAll briefs →
Brent Crude Jumps to $98.29 After Hormuz Tanker Fires
Brent crude (BZ=F) rebounded 3.9% after a two-month low as tankers burned near Hormuz and one hit a mine
Cloudflare Stock Jumps 17% After Hours on Earnings Beat
Cloudflare (NET) reported 39% revenue growth and lifted its full-year forecast, reversing a sharp selloff.
Dow Drops 3.4% as Chip Stock Crash Sends Nasdaq Into Correction
The Dow Jones (^DJI) lost 1,833 points as the S&P 500 fell 4.4% and Nasdaq slid 5.5% on AI data center fears.