July 4, 2026
MELI Is Down 36% From Its High
Featured: MELI Is Down 36% From Its High
Editor’s Note: Financial expert Dr. David Eifrig has guided his readers through just about every market scenario you can imagine: Including the financial crisis of 2008… the COVID-19 crash of 2020… the inflation crisis of 2022 – the worst year for stocks in more than a decade… the volatility we saw in 2023 with the bank failures, and even the tariff turbulence of 2025. But today: Dr. Eifrig warns a strange D.C. plan is underway, and it could send one particular type of investment absolutely soaring.
Dear Reader,
A dramatic story – which started as a wild rumor – is now playing out at the highest levels of finance…
In fact, this plan has all been laid out point-by-point by one of President Trump’s senior advisers.
And even though it’s the most-read story on Bloomberg terminals, a computer that professional investors pay $25,000 per year to access…
Nobody on Main Street seems to be aware of the blindsiding event that’s rushing toward them.
In London, staff at the Bank of England are being forced to work OVERNIGHT to enable the world’s richest people to move their money, according to Bloomberg.
And wealthy investors are loading up their suitcases with precious metals on commercial flights.
Hedge-fund managers are now briefing clients on the potential impact to their wealth, too…
And earlier this year, $2 TRILLION was pulled out of stocks in one week.
Take it from my colleague Dr. David Eifrig, a 40-year stock market veteran:
This is all extremely strange.
He wants to help pull back the curtain for you and your loved ones, too… at no cost.
Click here to watch his new urgent briefing before July 28.
Regards,
Matt Weinschenk
Publisher, Stansberry Research
P.S. Dr. David Eifrig has guided his readers through just about every market scenario you can imagine:
Including the financial crisis of 2008… the COVID-19 crash of 2020… the inflation crisis of 2022 – the worst year for stocks in more than a decade… the volatility we saw in 2023 with the bank failures, and even the tariff turbulence of 2025.
But make no mistake: Dr. Eifrig warns a huge event is underway, and it could send one particular type of investment absolutely soaring.
In his latest update, he lays out exactly how to position yourself.
He’s not talking about AI or crypto…
But if you act now, you have the chance to make 1,000% gains or more.
FEATURED
There’s a specific kind of market moment worth paying attention to. It’s when a business is doing its best work in years and the stock is going nowhere. Sometimes lower.
That’s exactly where MercadoLibre finds itself right now.
MELI is trading around $1,675 as of early July, down roughly 36% from its 52-week high of $2,645 reached in July 2025. On a year-to-date basis in 2026, the stock is off approximately 15-16%. And all of this is happening while the company just posted Q1 2026 results showing 49% revenue growth year over year, its strongest growth rate since Q2 2022.
Most companies would love that problem.
What the Numbers Actually Show
MercadoLibre reported Q1 2026 net revenues and financial income of $8.845 billion, up 49% year over year. Gross Merchandise Volume hit $19 billion, up 42%. Total Payment Volume through Mercado Pago reached $87.2 billion, up 50% year over year on a reported basis and 55% on an FX-neutral basis.
Brazil specifically is accelerating. FX-neutral GMV in Brazil grew 38% in Q1, up from 35% the prior quarter. Items sold jumped 56% and unit shipping costs fell 17% despite higher shipment volumes. The credit portfolio grew 87% year over year. Credit card monthly active users expanded 68% year over year. These are not metrics that suggest a business losing ground.
The stock got hit after earnings because EPS came in at $8.23 versus the consensus estimate of approximately $9.37, a miss of about 12%. Operating margins compressed to 6.9% as the company leaned into logistics spending, free shipping, credit card expansion, and promotional support in its core markets. Worth noting: revenue actually beat expectations by roughly 6.8%, coming in at $8.85 billion versus the $8.29 billion estimate.
“Frontier AI” is a point of no return when AI surpasses human intelligence and gains free will.
Elon Musk warns this moment could hit by the end of 2026. According to 60-year Wall Street legend, Marc Chaikin, Frontier AI could soon become the only thing that determines which companies make money and which grind to a halt. That’s why he’s giving away a list of stocks to buy and sell absolutely FREE to help you position your money for a world driven by Frontier AI technology.
Management was clear about the trade-off. They are choosing long-term market share over near-term margin. That is a deliberate posture, not a sign of distress.
What This Business Actually Is
The part people often miss about MercadoLibre is that it is not really a single company. It is an ecosystem.
Mercado Libre is the marketplace. Mercado Pago is the payments and fintech platform. Mercado Envios handles logistics. Mercado Credito handles lending. Mercado Fondo handles investment products.
Each of these is growing independently. Together, they create a locked-in flywheel across Latin America’s most populous markets at a time when e-commerce penetration in the region is still materially lower than in North America or Asia. That gap is the opportunity.
Fintech assets under management grew 77% year over year in Q1. That is not ad revenue. That is financial infrastructure being built across markets where traditional banking has historically underserved large portions of the population. And the company just committed $4.6 billion in new investment into Mexico in 2026 alone, focused on logistics, technology, and financial services.
The Valuation Gap
Here is where it gets interesting. The consensus 12-month analyst price target sits around $2,217 to $2,255, implying roughly 30-35% upside from current levels. That is not a fringe view. According to S&P Global data, 24 analysts cover the stock with a consensus Buy rating.
The more constructive targets: Morgan Stanley has an Overweight with a $2,450 target. Barclays maintains Overweight at $2,300. Goldman Sachs has a Buy at $2,100. Benchmark holds a Buy at $2,380. On the cautious side, UBS has a Neutral with a $1,750 target and JPMorgan sits at Neutral with a $1,900 target. Citi downgraded to Neutral post-earnings with a $1,950 target.
Slight tangent, but worth mentioning: the 2026 full-year revenue forecast from the Street has actually been revised up to $40.2 billion from $38.7 billion. EPS estimates for the year came down to $41.42 from $48.14, reflecting the margin compression reality. Net income is still forecast to grow 24% next year, ahead of the broader retail industry average of 18%.
The near-term risks are real. Currency swings across Brazil, Mexico, and Argentina create earnings volatility. Margin compression may continue as the company keeps investing. Competition from global and regional e-commerce players is intensifying, especially in Brazil where Amazon has been stepping up its presence. And the earnings miss spooked short-term holders who had more optimistic expectations.
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But here is the part that sticks: a company growing revenue nearly 50% year over year and expanding its fintech footprint across a region of 650 million people does not usually stay at a 36% discount to its recent high indefinitely.
The stock is lagging the business. That kind of gap tends to close. Q2 2026 results are expected around August 5. Whether margin trends show any early signs of stabilization will likely determine how the next leg plays out.
