MercadoLibre slides as Q4 profit and margin pressure overshadow strong revenue growth

MercadoLibre (MELI) is down 8.7% today. Here is some analysis on what might have caused this price movement.

Analysis: The decline appears tied to a mixed Q4 2025 earnings reaction, where revenue growth was strong but profitability came in lighter than investors expected. Margin pressure and higher investment/spending levels (including credit provisions and logistics/commerce initiatives) likely drove concern that near-term earnings could remain constrained.

Details:

MercadoLibre reported Q4 2025 EPS of $11.03, which missed analyst expectations even as revenue rose 45% year over year to about $8.76 billion.

Operating income was about $889 million and the operating margin was around 10.1%, viewed as soft versus prior expectations as the company spent more on areas like advertising, logistics, and other growth initiatives.

Net income declined year over year, with management attributing part of the drop to a more normalized tax rate compared with an unusually low level in the prior-year quarter.

Credit and fintech growth remained strong, but a larger credit book and higher provisions can weigh on profitability and amplify investor sensitivity to margin trends.

Sources:

SEC, Investors.com, Benzinga

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$MELI Insider Trading Activity

$MELI insiders have traded $MELI stock on the open market 3 times in the past 6 months. Of those trades, 0 have been purchases and 3 have been sales.

Here’s a breakdown of recent trading of $MELI stock by insiders over the last 6 months:

HENRIQUE VASONCELOS DUBUGRAS sold 845 shares for an estimated $1,713,778
STELLEO TOLDA sold 246 shares for an estimated $503,778
EMILIANO CALEMZUK sold 45 shares for an estimated $91,231

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$MELI Hedge Fund Activity

We have seen 745 institutional investors add shares of $MELI stock to their portfolio, and 758 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 1,327,972 shares (-74.3%) from their portfolio in Q4 2025, for an estimated $2,674,880,880
VIRTUE CAPITAL MANAGEMENT, LLC added 1,267,219 shares (+33234.2%) to their portfolio in Q4 2025, for an estimated $2,552,508,542
FMR LLC removed 881,886 shares (-63.1%) from their portfolio in Q4 2025, for an estimated $1,776,347,694
JENNISON ASSOCIATES LLC removed 716,487 shares (-66.0%) from their portfolio in Q4 2025, for an estimated $1,443,191,104
JPMORGAN CHASE & CO removed 494,084 shares (-27.8%) from their portfolio in Q4 2025, for an estimated $995,213,637
EAGLE CAPITAL MANAGEMENT LLC added 411,549 shares (+inf%) to their portfolio in Q4 2025, for an estimated $828,966,688
CAPITAL RESEARCH GLOBAL INVESTORS added 408,939 shares (+22.5%) to their portfolio in Q4 2025, for an estimated $823,709,470

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$MELI Congressional Stock Trading

Members of Congress have traded $MELI stock 8 times in the past 6 months. Of those trades, 5 have been purchases and 3 have been sales.

Here’s a breakdown of recent trading of $MELI stock by members of Congress over the last 6 months:

REPRESENTATIVE GILBERT RAY CISNEROS, JR. has traded it 4 times. They made 3 purchases worth up to $45,000 on 01/30, 11/18, 10/17 and 1 sale worth up to $15,000 on 12/24.
REPRESENTATIVE JONATHAN L. JACKSON sold up to $50,000 on 12/10.
REPRESENTATIVE MARJORIE TAYLOR GREENE has traded it 2 times. They made 2 purchases worth up to $30,000 on 10/24, 08/28 and 0 sales.
REPRESENTATIVE VAL T. HOYLE sold up to $15,000 on 09/23.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

$MELI Analyst Ratings

Wall Street analysts have issued reports on $MELI in the last several months. We have seen 9 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

BTIG issued a "Buy" rating on 02/25/2026
JP Morgan issued a "Overweight" rating on 02/12/2026
Wedbush issued a "Outperform" rating on 12/19/2025
UBS issued a "Buy" rating on 11/24/2025
Morgan Stanley issued a "Overweight" rating on 11/03/2025
Cantor Fitzgerald issued a "Overweight" rating on 10/30/2025
Barclays issued a "Overweight" rating on 10/30/2025

To track analyst ratings and price targets for $MELI, check out Quiver Quantitative's $MELI forecast page.

$MELI Price Targets

Multiple analysts have issued price targets for $MELI recently. We have seen 10 analysts offer price targets for $MELI in the last 6 months, with a median target of $2790.0.

Here are some recent targets:

Scott Devitt from Wedbush set a target price of $2400.0 on 02/25/2026
Deepak Mathivanan from Cantor Fitzgerald set a target price of $2400.0 on 02/25/2026
Marvin Fong from BTIG set a target price of $2650.0 on 02/25/2026
Marcelo Santos from JP Morgan set a target price of $2800.0 on 02/12/2026
Kaio Prato from UBS set a target price of $2900.0 on 11/24/2025
Andrew Ruben from Morgan Stanley set a target price of $2950.0 on 11/03/2025
Trevor Young from Barclays set a target price of $2900.0 on 10/30/2025

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.