MercadoLibre's stock fell nearly 8% following Lula da Silva's surprise election win in Brazil, reflecting political uncertainty. Despite this, the company remains a strong buy due to its solid fundamentals, with nearly half of its revenue generated outside Brazil. Q2 revenue rose 50% year-over-year, though operating margins declined to 6.7% as the company reinvests for growth. Key risks include potential fintech taxes, rising funding costs, and credit quality concerns as MercadoLibre expands its credit portfolio under Lula's administration. The stock trades at a forward P/E of 43.5x and 2.1x sales, with long-term upside dependent on margin recovery and sustained double-digit growth.
Following the political developments in Brazil mentioned in the news, MercadoLibre's stock shows only a slight decline on Pluang, down 0.08% as of Oct 28, 2026, 17:21 WIB. The stock trades at USD 1,679.17 with a market cap of $85.20 billion. Despite recent volatility, Pluang investors hold the stock for an average of 119 days, with 80% of order activity being buys, indicating continued confidence.
MercadoLibre's stock fell 22.78% last year despite record revenue growth of nearly 50%. The decline is due to shrinking operating margins from investments in free shipping, credit expansion, and AI tools, plus external pressures like tax reforms and ...
Brazilian stocks listed in the U.S. fell sharply after Luiz Inácio Lula da Silva won a surprise fourth term as Brazil's president, catching investors off guard. Nu Holdings dropped 25%, Petrobras fell 21%, and MercadoLibre declined 15%, reflecting co...
