MercadoLibre stock falls 13% post-earnings despite strong revenue growth and strategic investments.

MercadoLibre's stock dropped nearly 13% after its Q1 FY26 earnings report, despite accelerating revenue growth with Commerce up 47% and Fintech up 51% year-over-year. The decline is attributed to margin pressure from strategic investments like expanded free shipping, credit portfolio growth, and logistics spending. However, improving unit shipping costs and user engagement metrics support a positive outlook. With a potential 44% upside to the average price target, the analyst maintains a buy rating, viewing the risk-reward as attractive for investors.