1 Stat That Makes MercadoLibre Stock Hard to Ignore Before Aug. 5
Catie Hogan, The Motley Fool
Fri, July 31, 2026 at 2:25 PM GMT+3 2 min read
When MercadoLibre (NASDAQ: MELI) releases its earnings report on Aug. 5, there's one stat I'll be looking at in particular: revenue growth.
Last quarter, MercadoLibre's revenue jumped 49%, its fastest pace in four years. Revenue topped analysts' expectations, and it's a clear indication that the e-commerce and fintech company is rapidly expanding through Latin America as planned.
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MercadoLibre's Brazilian market saw a 56% increase. At the same time, its unit shipping costs dropped 17% year over year. This is due to the company's efforts to improve infrastructure and logistics within emerging markets.
Wall Street has still punished the stock despite clear evidence that the company's strategic investments are really starting to pay off. MercadoLibre's executive team deliberately reinvested capital in growth, which caused a temporary drop in operating margin that investors apparently did not like.
For those focused on the long term, however, MercadoLibre is priced quite attractively right now. The stock is down more than 20% in the past 12 months. The company is currently trading at less than 3 times its sales, with a price-to-earnings-to-growth (PEG) ratio of 1.15. This suggests that MercadoLibre is either fairly priced or slightly undervalued.
Getting back to the one stat that tells a bigger story: 49% revenue growth. If MercadoLibre can maintain this pace or accelerate it, the stock will eventually begin to reflect the incredible investments the company has made over the past decade to build a viable e-commerce and fintech business in Latin America. The opportunity there is too massive to ignore.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.
1 Stat That Makes MercadoLibre Stock Hard to Ignore Before Aug. 5 was originally published by The Motley Fool
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