MercadoLibre’s Growth Strategy Tests Investor Patience

Latin America’s e-commerce leader MercadoLibre finds itself navigating complex terrain as its aggressive expansion approach creates tension between spectacular revenue growth and declining profitability. The company’s current predicament highlights the classic corporate dilemma of choosing between immediate returns and long-term market dominance.

The third quarter of 2025 laid bare MercadoLibre’s contrasting performance metrics. On one hand, the company reported spectacular revenue growth, with sales surging 39.5% to reach $7.41 billion. This achievement marks the 27th consecutive quarter where growth has exceeded 30%, demonstrating remarkable consistency in top-line expansion.

However, the earnings picture told a different story. MercadoLibre’s per-share profit of $8.32 fell substantially short of analyst expectations, which had projected Read more...