MercadoLibre (MELI) faces increased credit risk in 2026 as lending expansion drives fintech growth, with fourth-quarter 2025 fintech revenues estimated at $3.63 billion, up 45% year-over-year. Argentina’s inflation at 31.4% adds to repayment stress. MELI’s credit-led growth and exposure to macro and funding risks are key concerns.

Competition intensifies for MercadoLibre as Sea Limited (SE) and Nu Holdings (NU) approach credit expansion more cautiously, reducing balance-sheet exposure. MELI’s faster credit expansion increases sensitivity to macro and funding risks compared to competitors in 2026.

MELI shares have dropped 21% in six months, underperforming the industry. Trading at a forward 12-month Price/Sales ratio of 2.71X, MELI has a Value Score of C. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $11.66 per share, indicating a 7.53% year-over-year decline.

MercadoLibre’s stock currently has a Zacks Rank #4 (Sell). Research experts have identified a top stock with significant growth potential, offering a money-doubling opportunity. This recommendation stands out among other picks like Hims & Hers Health, which saw a +209% increase.

Read more at Nasdaq: Does MercadoLibre’s Expanding Credit Book Elevate Risk in 2026?