← MercadoLibre overview

MercadoLibre vs American Express: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

MercadoLibre Inc. (MELI)

Q3 2026
▲2▼2

MELI Q3: Strong Growth, Profit Squeeze, Legal Cloud

  • Revenue Growth Accelerates Q2 revenue jumped 50% to $10.2 billion, the fastest in four years, as Brazil free shipping lifted items sold 56% and Mercado Pago grew to 88 million users.

    Shows the core business is expanding rapidly, a key positive driver for the stock.

  • Analysts Stay Bullish BofA maintained a Buy rating and Scotiabank set a $2,800 target, while AI and advertising became profit drivers, with ad revenue up 62%.

    Highlights external confidence and new profit sources that support the stock.

  • Profit Pressured by Credit Losses Profit fell 20% as credit-loss provisions doubled to $1.24 billion; operating margin narrowed to 6.7% from 12.2%, and first-half net income dropped 13%.

    Directly explains the earnings decline that weighs on the stock price.

  • Securities Investigation Adds Uncertainty A securities investigation adds legal uncertainty, compounding pressure on the stock as the company trades near-term profitability for scale.

    Introduces a new legal risk that could affect investor sentiment and valuation.

September 2026
▲3▼1

MELI spends heavily on growth, shipping, credit and AI as profit margins shrink

  • Profit margins squeezed by growth spending Operating income fell to $683 million from $825 million and margin narrowed to 6.7% from 12.2%, with first-half net income down 13% even as revenue jumped 50%. The company is deliberately trading near-term profit for scale, which pressures the stock.

    This is the main counterweight explaining why the stock sits well below its high despite strong growth.

  • Free shipping and buyer growth fuel Brazil Lowering the free-shipping threshold in Brazil lifted items sold 56% and FX-neutral GMV 39%, with items per buyer up 19% and more shoppers buying across categories. Stronger engagement supports future revenue and keeps MELI ahead of Amazon and Sea Limited.

    It shows the demand engine behind the growth that justifies the spending.

  • Mercado Pago fintech and credit surge Mercado Pago's monthly users rose 30% to 88 million, payment volume jumped 56% to $101 billion, and the credit book grew 75% to $16.4 billion with low bad-loan levels. This adds a fast-growing profit source beyond retail.

    Fintech is a major second growth engine that supports the bull case.

  • AI and advertising become real profit drivers AI spending of about $80 million drove 110% more code submissions and lower development costs, while advertising revenue jumped 62% and topped 10% of Latin America's digital ad market. These higher-margin businesses improve future profitability.

    It shows new, higher-margin revenue streams that can offset the profit drag from shipping and credit.

Latest
▲3▼1

MELI spends heavily on growth, shipping, credit and AI as profit margins shrink

  • Profit margins squeezed by growth spending Operating income fell to $683 million from $825 million and margin narrowed to 6.7% from 12.2%, with first-half net income down 13% even as revenue jumped 50%. The company is deliberately trading near-term profit for scale, which pressures the stock.

    This is the main counterweight explaining why the stock sits well below its high despite strong growth.

  • Free shipping and buyer growth fuel Brazil Lowering the free-shipping threshold in Brazil lifted items sold 56% and FX-neutral GMV 39%, with items per buyer up 19% and more shoppers buying across categories. Stronger engagement supports future revenue and keeps MELI ahead of Amazon and Sea Limited.

    It shows the demand engine behind the growth that justifies the spending.

  • Mercado Pago fintech and credit surge Mercado Pago's monthly users rose 30% to 88 million, payment volume jumped 56% to $101 billion, and the credit book grew 75% to $16.4 billion with low bad-loan levels. This adds a fast-growing profit source beyond retail.

    Fintech is a major second growth engine that supports the bull case.

  • AI and advertising become real profit drivers AI spending of about $80 million drove 110% more code submissions and lower development costs, while advertising revenue jumped 62% and topped 10% of Latin America's digital ad market. These higher-margin businesses improve future profitability.

    It shows new, higher-margin revenue streams that can offset the profit drag from shipping and credit.

July 2026
▲2▼2

MELI Q2 revenue surges 50% but margins and legal probe weigh

  • Q2 revenue accelerates 50% MercadoLibre's second-quarter revenue jumped 50% to $10.2 billion, the fastest growth in four years, as both commerce and fintech businesses sped up. This shows the company is still winning customers and expanding rapidly.

    This is the main new positive development for the period, showing strong top-line momentum.

  • Analysts see big upside BofA kept a Buy rating, noting the credit card portfolio doubled to $6.6 billion and should break even by 2028. Scotiabank set a $2,800 target, implying 55% upside, and sees revenue hitting $50 billion by 2027.

    Analyst upgrades and price targets are new and can influence investor sentiment and the stock price.

  • Profit falls 20% on credit losses Operating margin dropped to 6.7% and profit fell 20% as credit loss provisions doubled to $1.24 billion. Longer loan terms and riskier borrowers are squeezing earnings, making investors cautious about future profitability.

    This is a key negative factor that directly pressures the stock and reflects ongoing margin challenges.

  • Securities investigation adds uncertainty Law firm Kirby McInerney is investigating possible securities law violations at MercadoLibre. While details are scarce, the probe creates legal uncertainty that could weigh on the stock and distract management.

    This is a new legal risk that could affect investor confidence and the stock price.

▲3▼1

MELI Q2 Revenue Tops $10B, But Margin Squeeze Persists

  • Q2 Revenue Surges Past $10 Billion MercadoLibre's Q2 2026 net revenue jumped 50% to $10.2 billion, the fastest growth in four years, with strong gains in commerce and fintech. This shows the core business is accelerating, which supports a higher stock price as investors gain confidence in future earnings.

    This is the period's biggest new positive event, directly driving revenue expectations and investor sentiment.

  • Fulfillment Network Widens Competitive Moat MercadoLibre's logistics network now handles 55% of shipments, with same- and next-day deliveries up 39% and shipping costs in Brazil down 17%. This efficiency strengthens its edge over rivals and supports long-term profitability, which can lift the stock.

    It highlights a structural advantage that improves cost and customer experience, key for future margins.

  • Analyst Sees 55% Upside Despite Margin Drop Scotiabank maintained a Sector Outperform rating and a Street-high $2,800 price target, implying 55% upside. Most analysts still rate the stock a Buy, arguing the margin decline is a deliberate investment cycle that will reverse, which can boost investor confidence.

    Analyst optimism provides a counterweight to margin fears and signals potential upside.

  • Margin Compression and Credit Provisions Weigh Operating margin fell to 6.7% and profit dropped 20% as credit loss provisions doubled to $1.24 billion. The company extended loan terms and entered riskier segments, raising concerns about credit quality and near-term profitability, which pressures the stock.

    This is the main negative force, explaining why the stock remains under pressure despite strong revenue.

▲2▼1

MELI: Growth Strong but Margin and Legal Worries Weigh

  • BofA Backs Credit Card Growth Bank of America reaffirmed its Buy rating, noting the credit card portfolio doubled to $6.6 billion and should break even by 2028. This reassures investors that heavy credit spending will eventually pay off, supporting the stock.

    This analyst call directly addresses the credit-loss concern that has pressured MELI, offering a positive counterweight.

  • Securities Law Investigation Law firm Kirby McInerney is investigating MercadoLibre for possible securities law violations tied to its Q1 2026 disclosures on longer loan terms. No lawsuit yet, but the probe adds legal uncertainty and could keep investors cautious.

    This is a new legal risk that could weigh on the stock and is not in earlier reports.

  • Revenue on Track for $50B MELI is on pace to hit $50 billion in revenue by 2027, with Q1 revenue up 49% and Brazil active buyers up 32% after lowering free shipping thresholds. Strong demand and a low price-to-sales ratio make the growth story compelling.

    This highlights the strong demand and growth trajectory that underpin the bull case for MELI.

Q2 2026
▼3▲1

MELI: Brazil growth strong, but heavy spending and credit losses squeeze profits

  • First-party expansion squeezes margins MercadoLibre's push into selling its own inventory (first-party) grew 69% and cut gross margin by 300 basis points. This strategy wins market share but requires costly warehouses and logistics, delaying profit recovery and pressuring the stock.

    This is a core new reason for margin pressure and directly explains why profits are falling despite sales growth.

  • Credit losses surge as loan book grows Bad-loan provisions jumped to over $1.24 billion from $603 million a year earlier, as the credit portfolio grew 87%. Rising defaults could keep eating into earnings, making investors cautious about future profit targets.

    This is a major new negative force behind the profit miss and estimate cuts, not just old news.

  • Wall Street slashes profit estimates After a third profit miss in four quarters, analysts cut 2026 profit estimates by 28% and 2027 by 25%. Lower expectations weigh on the stock, though some see the 42x earnings multiple as a buying opportunity if margin pressure proves temporary.

    This shows the market's reaction to weak profits and is a key driver of the stock's decline.

  • Brazil growth accelerates with better logistics In Brazil, FX-neutral GMV rose 38% and items sold jumped 56%, while unit shipping costs fell 17%. Strong demand and efficiency gains could improve profitability and free up cash for reinvestment, offering a counterweight to margin worries.

    This is a new positive operational update that shows the core business is still growing strongly and becoming more efficient.

June 2026
▼3▲1

MELI: Brazil growth strong, but heavy spending and credit losses squeeze profits

  • First-party expansion squeezes margins MercadoLibre's push into selling its own inventory (first-party) grew 69% and cut gross margin by 300 basis points. This strategy wins market share but requires costly warehouses and logistics, delaying profit recovery and pressuring the stock.

    This is a core new reason for margin pressure and directly explains why profits are falling despite sales growth.

  • Credit losses surge as loan book grows Bad-loan provisions jumped to over $1.24 billion from $603 million a year earlier, as the credit portfolio grew 87%. Rising defaults could keep eating into earnings, making investors cautious about future profit targets.

    This is a major new negative force behind the profit miss and estimate cuts, not just old news.

  • Wall Street slashes profit estimates After a third profit miss in four quarters, analysts cut 2026 profit estimates by 28% and 2027 by 25%. Lower expectations weigh on the stock, though some see the 42x earnings multiple as a buying opportunity if margin pressure proves temporary.

    This shows the market's reaction to weak profits and is a key driver of the stock's decline.

  • Brazil growth accelerates with better logistics In Brazil, FX-neutral GMV rose 38% and items sold jumped 56%, while unit shipping costs fell 17%. Strong demand and efficiency gains could improve profitability and free up cash for reinvestment, offering a counterweight to margin worries.

    This is a new positive operational update that shows the core business is still growing strongly and becoming more efficient.

▼3▲1

MELI: Brazil growth strong, but heavy spending and credit losses squeeze profits

  • First-party expansion squeezes margins MercadoLibre's push into selling its own inventory (first-party) grew 69% and cut gross margin by 300 basis points. This strategy wins market share but requires costly warehouses and logistics, delaying profit recovery and pressuring the stock.

    This is a core new reason for margin pressure and directly explains why profits are falling despite sales growth.

  • Credit losses surge as loan book grows Bad-loan provisions jumped to over $1.24 billion from $603 million a year earlier, as the credit portfolio grew 87%. Rising defaults could keep eating into earnings, making investors cautious about future profit targets.

    This is a major new negative force behind the profit miss and estimate cuts, not just old news.

  • Wall Street slashes profit estimates After a third profit miss in four quarters, analysts cut 2026 profit estimates by 28% and 2027 by 25%. Lower expectations weigh on the stock, though some see the 42x earnings multiple as a buying opportunity if margin pressure proves temporary.

    This shows the market's reaction to weak profits and is a key driver of the stock's decline.

  • Brazil growth accelerates with better logistics In Brazil, FX-neutral GMV rose 38% and items sold jumped 56%, while unit shipping costs fell 17%. Strong demand and efficiency gains could improve profitability and free up cash for reinvestment, offering a counterweight to margin worries.

    This is a new positive operational update that shows the core business is still growing strongly and becoming more efficient.

American Express Company (AXP)

Q3 2026
▲2▼2

AmEx Q2 beats but cost surge and unchanged guidance spook investors

  • Q2 earnings beat and raised revenue outlook AmEx beat profit expectations and raised its full-year revenue growth target to about 10%, helped by strong card spending, higher billings, and a 16% jump in card fees.

    This is the core positive fundamental news that drove the quarter's results.

  • Platinum fee hike and new partnerships AmEx raised the Platinum annual fee 29% to $895 with near-perfect retention, launched Accor and Bottomline partnerships, and introduced business savings and checking accounts to deepen customer relationships.

    These strategic moves show pricing power and expansion into new areas.

  • Revenue miss and unchanged EPS guidance Despite the earnings beat, revenue of $19.6 billion fell short of estimates, and AmEx kept its full-year EPS guidance unchanged at $17.30–$17.90, signaling it will reinvest rather than return more cash to shareholders.

    This is the key negative that disappointed investors and weighed on the stock.

  • Heavy spending to compress near-term margins AmEx is ramping up marketing, technology, and card-member services spending, which jumped 50%, and this will squeeze profit margins in the near term, causing the stock to fall sharply on cost and guidance concerns.

    This explains the sharp stock drop and the margin pressure outlook.

August 2026
▲2▼2

AmEx raises outlook on strong spending, but higher costs and spending weigh

  • Q2 revenue miss and unchanged EPS guidance American Express reported second-quarter revenue of $19.6 billion, up 10% but below Wall Street estimates, and kept its full-year earnings-per-share guidance unchanged at $17.30 to $17.90. The stock fell sharply because investors had hoped for a raise, and the unchanged outlook signaled that extra profit would be reinvested rather than returned.

    This is the main reason the stock dropped this period and sets up the tug-of-war between growth spending and near-term profit.

  • Heavy spending on marketing and technology Management said it will boost marketing spending by 10% in the second half and continue investing in technology and customer acquisition. Card-member services costs jumped 50% to $1.95 billion, and data processing spending rose 13%. Higher costs eat into near-term profit, which is why the stock fell even as revenue guidance was raised.

    It explains the cost side of the story and why profit guidance didn't move up despite better revenue.

  • Raised revenue outlook on strong card spending AmEx lifted its 2026 revenue-growth outlook toward 10%, citing strong card spending, mid-teens earnings-per-share growth, and a 16% jump in card fees. Billings grew 8% to 9%, and net interest income rose at a double-digit rate. This shows the core business is healthy and growing, which supports the stock over time.

    It is the key positive counterweight: the company is growing faster than previously expected.

  • New business savings and checking accounts American Express launched a high-yield business savings account paying 2.95% and a business checking account, aiming to attract small-business deposits and deepen customer relationships. This gives AmEx a new source of funding and more ways to earn fees, though paying interest on deposits will cost money as balances grow.

    It is a new product expansion that could add a steady funding base and fee income over time.

Latest
▲2▼2

AmEx raises outlook on strong spending, but higher costs and spending weigh

  • Q2 revenue miss and unchanged EPS guidance American Express reported second-quarter revenue of $19.6 billion, up 10% but below Wall Street estimates, and kept its full-year earnings-per-share guidance unchanged at $17.30 to $17.90. The stock fell sharply because investors had hoped for a raise, and the unchanged outlook signaled that extra profit would be reinvested rather than returned.

    This is the main reason the stock dropped this period and sets up the tug-of-war between growth spending and near-term profit.

  • Heavy spending on marketing and technology Management said it will boost marketing spending by 10% in the second half and continue investing in technology and customer acquisition. Card-member services costs jumped 50% to $1.95 billion, and data processing spending rose 13%. Higher costs eat into near-term profit, which is why the stock fell even as revenue guidance was raised.

    It explains the cost side of the story and why profit guidance didn't move up despite better revenue.

  • Raised revenue outlook on strong card spending AmEx lifted its 2026 revenue-growth outlook toward 10%, citing strong card spending, mid-teens earnings-per-share growth, and a 16% jump in card fees. Billings grew 8% to 9%, and net interest income rose at a double-digit rate. This shows the core business is healthy and growing, which supports the stock over time.

    It is the key positive counterweight: the company is growing faster than previously expected.

  • New business savings and checking accounts American Express launched a high-yield business savings account paying 2.95% and a business checking account, aiming to attract small-business deposits and deepen customer relationships. This gives AmEx a new source of funding and more ways to earn fees, though paying interest on deposits will cost money as balances grow.

    It is a new product expansion that could add a steady funding base and fee income over time.

July 2026
▲3

AmEx Q2: Record Spending, Raised Revenue Outlook, but Reinvestment Hits Stock

  • Platinum Card Annual Fee Raised 29% to $895 American Express raised the Platinum card annual fee from $695 to $895, the first hike since 2021. Card fees already make up over 14% of revenue and are growing fast. Retention stayed near 100%, so this directly boosts revenue and profit.

    This is a new pricing move that directly increases a key revenue stream for AXP.

  • New Accor and Bottomline Partnerships Expand Travel and B2B Payments AmEx launched a global partnership with Accor's loyalty program, letting cardholders transfer points and match elite status. It also integrated Bottomline's Paymode network into its business payments platform. These deals drive more card usage and transaction volume.

    These are new partnerships that expand AmEx's network and drive future transaction volume.

  • Q2 Earnings: EPS Beat, Revenue Miss, Guidance Raised but EPS Held AmEx beat earnings per share ($4.53 vs $4.40) and raised full-year revenue growth guidance to 10%, but revenue slightly missed and EPS guidance was unchanged. Management will reinvest the extra money into growth, so profit margins may compress in the second half. The stock fell about 6% on the news.

    This is the main new event of the period and explains the sharp stock drop despite a headline beat.

  • AI Speeds Up Tech Work, Job Cuts Only Through Attrition CEO Squeri said AI is helping AmEx tackle its technology backlog faster, with workforce reductions happening gradually through attrition. The company launched an AI-powered service portal and is using AI to speed marketing. This could lower costs and improve efficiency over time.

    This is a new technology initiative that could improve efficiency and support future earnings.

▲3

AmEx Q2: Record Spending, Raised Revenue Outlook, but Reinvestment Hits Stock

  • Platinum Card Annual Fee Raised 29% to $895 American Express raised the Platinum card annual fee from $695 to $895, the first hike since 2021. Card fees already make up over 14% of revenue and are growing fast. Retention stayed near 100%, so this directly boosts revenue and profit.

    This is a new pricing move that directly increases a key revenue stream for AXP.

  • New Accor and Bottomline Partnerships Expand Travel and B2B Payments AmEx launched a global partnership with Accor's loyalty program, letting cardholders transfer points and match elite status. It also integrated Bottomline's Paymode network into its business payments platform. These deals drive more card usage and transaction volume.

    These are new partnerships that expand AmEx's network and drive future transaction volume.

  • Q2 Earnings: EPS Beat, Revenue Miss, Guidance Raised but EPS Held AmEx beat earnings per share ($4.53 vs $4.40) and raised full-year revenue growth guidance to 10%, but revenue slightly missed and EPS guidance was unchanged. Management will reinvest the extra money into growth, so profit margins may compress in the second half. The stock fell about 6% on the news.

    This is the main new event of the period and explains the sharp stock drop despite a headline beat.

  • AI Speeds Up Tech Work, Job Cuts Only Through Attrition CEO Squeri said AI is helping AmEx tackle its technology backlog faster, with workforce reductions happening gradually through attrition. The company launched an AI-powered service portal and is using AI to speed marketing. This could lower costs and improve efficiency over time.

    This is a new technology initiative that could improve efficiency and support future earnings.

Q2 2026
▲4

AmEx's affluent base powers record spending; digital and dining bets expand

  • Affluent customers keep spending, boosting AmEx revenue AmEx reported that its wealthy cardholders are still spending strongly despite inflation. Billed business grew 10% in Q1, the fastest in three years, and luxury purchases jumped 18%. This matters because AmEx earns a fee every time a card is used, so more spending directly lifts revenue and profit.

    This is the core demand driver behind AmEx's recent earnings strength and stock recovery.

  • Strong Q1 results and low credit losses cushion AmEx AmEx's Q1 net income rose 15% as fee revenue and net interest income grew double digits. Its loan write-off rate improved to 2%, far below the average bank's 4%. Because AmEx lends to wealthier customers, fewer of them default, which keeps profits stable even in a shaky economy.

    Shows the financial health and lower risk that support AmEx's valuation.

  • AmEx buys TheFork to grow dining and international reach AmEx agreed to buy restaurant booking platform TheFork for $700 million, adding about 75,000 restaurants to its network. This expands AmEx's international presence and gives cardholders more dining perks, which can attract new customers and increase card usage abroad.

    A major acquisition that expands AmEx's global footprint and premium offerings.

  • AmEx joins stablecoin group and adds Apple Pay rewards AmEx joined over 140 companies backing Open USD, a stablecoin project for cheaper digital payments, and now lets U.S. cardholders redeem Membership Rewards points directly through Apple Pay. These moves push AmEx deeper into everyday digital spending, helping it stay competitive with other payment apps.

    Highlights AmEx's technology push to keep up with digital payment trends.

June 2026
▲4

AmEx's affluent base powers record spending; digital and dining bets expand

  • Affluent customers keep spending, boosting AmEx revenue AmEx reported that its wealthy cardholders are still spending strongly despite inflation. Billed business grew 10% in Q1, the fastest in three years, and luxury purchases jumped 18%. This matters because AmEx earns a fee every time a card is used, so more spending directly lifts revenue and profit.

    This is the core demand driver behind AmEx's recent earnings strength and stock recovery.

  • Strong Q1 results and low credit losses cushion AmEx AmEx's Q1 net income rose 15% as fee revenue and net interest income grew double digits. Its loan write-off rate improved to 2%, far below the average bank's 4%. Because AmEx lends to wealthier customers, fewer of them default, which keeps profits stable even in a shaky economy.

    Shows the financial health and lower risk that support AmEx's valuation.

  • AmEx buys TheFork to grow dining and international reach AmEx agreed to buy restaurant booking platform TheFork for $700 million, adding about 75,000 restaurants to its network. This expands AmEx's international presence and gives cardholders more dining perks, which can attract new customers and increase card usage abroad.

    A major acquisition that expands AmEx's global footprint and premium offerings.

  • AmEx joins stablecoin group and adds Apple Pay rewards AmEx joined over 140 companies backing Open USD, a stablecoin project for cheaper digital payments, and now lets U.S. cardholders redeem Membership Rewards points directly through Apple Pay. These moves push AmEx deeper into everyday digital spending, helping it stay competitive with other payment apps.

    Highlights AmEx's technology push to keep up with digital payment trends.

▲4

AmEx's affluent base powers record spending; digital and dining bets expand

  • Affluent customers keep spending, boosting AmEx revenue AmEx reported that its wealthy cardholders are still spending strongly despite inflation. Billed business grew 10% in Q1, the fastest in three years, and luxury purchases jumped 18%. This matters because AmEx earns a fee every time a card is used, so more spending directly lifts revenue and profit.

    This is the core demand driver behind AmEx's recent earnings strength and stock recovery.

  • Strong Q1 results and low credit losses cushion AmEx AmEx's Q1 net income rose 15% as fee revenue and net interest income grew double digits. Its loan write-off rate improved to 2%, far below the average bank's 4%. Because AmEx lends to wealthier customers, fewer of them default, which keeps profits stable even in a shaky economy.

    Shows the financial health and lower risk that support AmEx's valuation.

  • AmEx buys TheFork to grow dining and international reach AmEx agreed to buy restaurant booking platform TheFork for $700 million, adding about 75,000 restaurants to its network. This expands AmEx's international presence and gives cardholders more dining perks, which can attract new customers and increase card usage abroad.

    A major acquisition that expands AmEx's global footprint and premium offerings.

  • AmEx joins stablecoin group and adds Apple Pay rewards AmEx joined over 140 companies backing Open USD, a stablecoin project for cheaper digital payments, and now lets U.S. cardholders redeem Membership Rewards points directly through Apple Pay. These moves push AmEx deeper into everyday digital spending, helping it stay competitive with other payment apps.

    Highlights AmEx's technology push to keep up with digital payment trends.

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