Why Is MERCADOLIBRE INC (MELI) Stock Down Today?

MELI shares fell 11.55% to $1601.00 on Monday. The primary driver was the surprise re-election of Brazilian President Luiz Inacio Lula da Silva, which triggered a broad selloff in U.S.-listed Brazilian equities. Investors expressed concern over potential fiscal risks and currency volatility associated with the new term.

What Happened

The election result hit Brazilian companies with significant government policy exposure and borrowing costs. Nu Holdings sank 25% to $11.30, while Petrobras tumbled 21%. MercadoLibre dropped 15% in the initial trading session. Other consumer and industrial names, including Ambev, Arcos Dorados, and JBS, also declined as markets priced in political shock. Brazil ETFs crashed more than 20% following the vote. The move reflects a broader risk-off sentiment toward the Brazilian economy, with analysts monitoring the impact on local currency and interest rates.

What The Data Shows

The stock opened at $1654.74, an 8.6% gap down from the prior close of $1810.15. The session high was $1655.00 at 7:00 AM ET, while the low reached $1521.54 at 9:00 AM ET. Volume stood at 0.4 million shares, which is 0.9 times the three-month daily average. Fundamentals show a market cap of $91.8 billion and a P/E ratio of 49.3. Revenue grew 46.0% over the trailing twelve months, and the net margin is 5.3%. The beta is 1.31. The 52-week range is $1495.00 to $2428.00. The stock printed two fresh 52-week highs on October 26, 2026. Over the last eight sessions, the price trend was up 9.0%, moving from $1702.96 to $1856.66. Sentiment has deteriorated, with the 30-day average at 53 out of 100 and the last seven days at 42 out of 100.

What To Watch

Coverage breadth remains high, with five stories from four sources in the last 36 hours. Investors will monitor how the market digests the election results and whether the fiscal concerns lead to further volatility in Brazilian assets.