MercadoLibre, Inc. (MELI)
NASDAQConsumer DiscretionarySpecialty RetailSnapshot 2026-11-05
$1530.28-12.05%
Close 2026-11-05 · 1-day change
NASDAQConsumer DiscretionarySpecialty RetailSnapshot 2026-11-05
QuarterlyIQ Insights · MELI
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-11-05.
The screen ranks MELI against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6999).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Today, we are choosing to invest, because the habits we are building are worth more than the margin we are forgoing in the short term to build them.
Stated in 3 of 3 supplied quarters. Management reported: “Income from operations was $676mn, down 6% YoY, with a margin of 6.3%, 40bps below Q2'26, reflecting the cost of more free shipping and new fulfillment capacity added ahead of peak season, and a tactical decision to increase affiliate marketing spend in Brazil, both of which we discuss in the Financial Results section.” “Today, we are choosing to invest, because the habits we are building are worth more than the margin we are forgoing in the short term to build them.” Operating income was $676.000 million in 2026-Q3.
“Today, we are choosing to invest, because the habits we are building are worth more than the margin we are forgoing in the short term to build them.”
“Income from operations of $683mn declined 17% YoY, with a margin of 6.7%, broadly stable QoQ, as we continue to set the dial in a way that prioritizes long-term value creation over short-term profita…”
“Income from operations decreased by 20% YoY as we chose to prioritize long-term growth investments over short-term profitability.”
In Brazil, items per buyer was growing at a single-digit pace before we lowered the free shipping threshold; in Q3'26 it grew 16% YoY, still double-digit even as we fully lapped the change.
Stated in 3 of 3 supplied quarters. Management reported: “In Brazil, items per buyer was growing at a single-digit pace before we lowered the free shipping threshold; in Q3'26 it grew 16% YoY, still double-digit even as we fully lapped the change.” “In Brazil, our cost per shipment in Q3'26 was 5% lower YoY in local currency and 14% lower than in Q1'25, the last full quarter before we lowered the free MercadoLibre, Inc. Letter to Shareholders MercadoLibre Letter to Shareholders 1 Q3’26 Results shipping threshold (as shown on the chart below).”
The credit card remains our largest investment in Fintech, which has totaled almost $450mn over the past 12 months.
Stated in 3 of 3 supplied quarters. Management reported: “Our credit portfolio reached almost $18bn in Q3'26, up 62% YoY.” “The credit card remains our largest investment in Fintech, which has totaled almost $450mn over the past 12 months.”
“The credit card remains our largest investment in Fintech, which has totaled almost $450mn over the past 12 months.”
Advertising revenue grew 51% YoY on an FX-neutral basis (58% in USD), well ahead of the market, with slower growth in Argentina and Mexico.
Artificial Intelligence (AI) Our investment in AI grew by almost $30mn QoQ.
Stated in 3 of 3 supplied quarters. Management reported: “Artificial Intelligence (AI) Our investment in AI grew by almost $30mn QoQ.” “In productivity, the output of our technology teams has doubled over the past year, and the gains extend across the company: in Finance, AI has freed up almost 20% of hours worked.”
“Artificial Intelligence (AI) Our investment in AI grew by almost $30mn QoQ.”
Over the trailing year it converted 4.61x of net income into operating cash flow. Historically, Consumer Discretionary names rated robust grew net income 58% of the time over the next year (vs 45% for the rest of the cohort, n=3629).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
8 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated stable grew net income 53% of the time over the next year (vs 54% for the rest of the cohort, n=4907).
Not investment advice. As of 2026-11-05.
“In Brazil, items per buyer was growing at a single-digit pace before we lowered the free shipping threshold; in Q3'26 it grew 16% YoY, still double-digit even as we fully lapped the change.”
“Growth accelerated, and this continued into Q2'26, with FX-neutral GMV growing 39% YoY and sold items growing 56% YoY.”
“Brazil GMV growth accelerated to 38% YoY on an FX-neutral basis, supported by items sold growth of 56% YoY, up from 45% in Q4'25, 42% in Q3'25 and 26% in Q2'25.”
“We continue to invest in growing the book at this pace not only because we have the technology in place to manage risk — our underwriting models continue to improve — but also because the card is one…”
“The Mercado Pago Credit Card Investing in our credit card is as pivotal for Mercado Pago as the launch of our managed logistics network was for our marketplace ten years ago.”
“Artificial Intelligence (AI) AI is transforming how we build and operate, particularly in our technology organization.”
“Artificial Intelligence AI is playing an increasingly important role in how we execute across Commerce and Fintech – improving efficiency, enhancing the user experience and generating incremental rev…”