MercadoLibre Shows Strong GMV Growth Across Latin America Markets
MercadoLibre MELI reported strong growth in its marketplace operations for the second quarter of 2026, with gross merchandise volume (GMV) reaching $21.9 billion, a 44% year-over-year increase and 36% growth on an FX-neutral basis. The number of items sold rose 45% to 795.4 million, driven by rising buyer activity and deeper engagement. Brazil remains the primary growth engine, with FX-neutral GMV up 39% and items sold increasing 56%. The company's lower free-shipping threshold continues to boost conversion rates and buyer retention.
Beyond Brazil, MercadoLibre is expanding its market reach. Mexico saw a 26% FX-neutral GMV growth despite tax reform and a weaker macroeconomic environment. Argentina delivered 38% FX-neutral GMV growth despite a challenging consumption environment. Cross-border trade is also growing, with FX-neutral GMV rising 60% and triple-digit growth in Argentina, Brazil, and other markets. The company's China fulfillment center saw a 170% sequential volume increase, broadening product selection and price points.
MercadoLibre's unique active buyers reached 89.3 million, with items sold per buyer up 14% overall. The company's multi-market GMV trajectory reflects strong operational momentum and further room for expansion across Latin America. Despite this growth, MercadoLibre's shares have declined 6% over the past three months, compared to a 1% industry rise. Amazon.com, Inc. AMZN shares have climbed 3.1%, while Sea Limited SE has fallen 9.3% in the same period.
From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio is 33.24, higher than the industry average of 20.11. The stock is trading below its 12-month median level of 34.18. The Zacks Consensus Estimate for MercadoLibre's current fiscal-year sales implies 44.7% year-over-year growth, while earnings per share are expected to decline by 2.8%. For the next fiscal year, sales are projected to rise 29% with a 43.7% increase in earnings.