MercadoLibre shares dropped 8.96% to $1,648.00 in Monday's premarket trading, according to Benzinga Pro data, after President Luiz Inácio Lula da Silva won another term in Brazil. Brazil's electoral authority said Lula received 51.79% of valid votes, while Senator Flávio Bolsonaro received 48.21%. The result unsettled investors and prompted a sell-off in Brazilian stocks. Lula's victory also underscored political divisions between Brazil, Latin America's largest economy, and U.S. President Donald Trump. Nasdaq futures rose 0.02%. S&P 500 futures increased 0.08%.
Brazilian stocks had rallied in recent weeks following Bolsonaro's unexpected lead in the first round. Investors had anticipated business-friendly reforms, spending reductions and support for privatization under Bolsonaro. However, Lula's unexpected victory changed those expectations. Investors consequently unwound positions associated with a possible Bolsonaro administration. Petrobras and XP Inc., other Brazilian companies listed in the United States, also recorded steep premarket declines.
Brazil is MercadoLibre's biggest market, making Brazil's economic prospects important to MercadoLibre's business. Brazil contributed $15.2 billion of MercadoLibre's $28.9 billion in net revenue and financial income in 2025, approximately 52.6% of the total. Changes in Brazil's economic policies, consumer spending and business conditions could therefore affect MercadoLibre's growth.
MercadoLibre shares face technical weakness ahead of the next earnings release. At $1,650, MercadoLibre shares trade 10% below the 20-day simple moving average. The $1,650 share price is 12% below the 50-day average. The $1,650 share price is 10.3% below the 200-day average. Those levels indicate weakness in both short-term and long-term trends. The 20-day average also remains below the 50-day average, strengthening the bearish signal.
MercadoLibre's relative strength index is 46.42, indicating neutral momentum. The reading suggests MercadoLibre shares are neither oversold nor demonstrating a strong recovery. Traders are monitoring resistance at $1,924.50, where selling could constrain a rebound. Support lies near $1,631. A decline below that support could renew attention on the 52-week low of $1,495. MercadoLibre shares have lost 20.69% over the past 12 months. The September high and October low remain significant technical reference points.
MercadoLibre is expected to announce earnings on November 6, 2026. Analysts forecast earnings per share of $9.37, compared with $8.32 a year earlier. Analysts project revenue of $10.66 billion, against $7.41 billion in the comparable prior-year period. MercadoLibre's price-to-earnings ratio is 49.2, reflecting a premium valuation. Analysts' consensus rating is Buy, with an average price forecast of $2,278.
Citigroup retained a Neutral rating and cut the price forecast to $2,100 on October 13. Cantor Fitzgerald retained an Overweight rating and lowered the price forecast to $2,200 on October 12. Susquehanna retained a Positive rating and increased the price forecast to $2,500 on October 6.
MercadoLibre Stock Drops 8.96% Pre-Market After Lula's Brazil Election Win
BenzingaShare
Summary
MercadoLibre (NASDAQ:MELI) stock dropped 8.96% to $1,648.00 in pre-market trading on October 26, 2026, after Brazil’s Lula won re-election with 51.79% of valid votes. The result shifted market sentiment and pressured Brazilian equities. Brazil accounts for 52.6% of MercadoLibre’s 2025 net revenue. The stock now trades below all major moving averages, reflecting the fear and greed index’s bearish tilt. Earnings are due November 6, with an expected EPS of $9.37 and revenue of $10.66 billion.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.