$10 billion in second-quarter revenue marked MercadoLibre's first time above that threshold, yet the stock remains about 30% below its high as investors weigh its growth-first strategy.
50% revenue growth was driven by a 44% rise in gross merchandise volume and a 56% increase in payment volume, with Brazil's lower free-shipping threshold lifting items per buyer 19% and conversion 1.1 points.
Ecosystem users helped support that case: shoppers using both the marketplace and Mercado Pago generated 70% more GMV and 55% more items sold per user than marketplace-only customers.
6.7% operating margin, down from 12.2% a year earlier, showed the cost of that push as operating income fell to $683 million, capital spending hit $441 million and $2.1 billion went into expanding the credit book.
$16.4 billion in loans was up 75% with delinquency near historical lows, but first-half net income still fell 13% to $883 million as competition from Amazon and lending losses pressured profits.