Why MercadoLibre Stock Jumped 11% in July

MercadoLibre stock is 30% off its high as the market expresses its displeasure at lower profits.

The company has been growing rapidly, and its e-commerce and fintech ecosystem users are spearheading the growth.

Management is continuing to invest in the platform to set the stage for future success.

MercadoLibre (NASDAQ: MELI) stock rose 11% in July, according to data provided by S&P Global Market Intelligence . There wasn't any news specific to the company, but the market seemed to pick up on a good bargain ahead of the second-quarter report on Aug. 5.

To understand why the stock jumped in July, you need to first understand why the stock is 30% off its high. While the company is growing rapidly, profitability has been declining, and the market has been disappointed.

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However, it seems to have bottomed out, for now at least. Investors were scooping up shares in July as it got closer to second-quarter earnings, although the report got a tepid reaction.

In the 2026 second quarter, revenue increased 50% year over year, driven by a 44% year-over-year increase in gross merchandise volume (GMV) and a 56% increase in total payment volume. Management has been increasing its investments in the platform to grab greater market share and solidify its dominant position in Latin American e-commerce. The main drags on profitability are its lowered free shipping threshold in Brazil and the increased credit card business. Both of those impacts are likely short term, but they should lead to strong long-term results. Some of the results are already in as the business skyrockets in Brazil.