New York, January 14, 2026, 13:27 EST — Regular session underway
- Shares of MercadoLibre dropped roughly 1.3% in afternoon trading amid a sell-off in tech and growth stocks
- According to a report citing Folha de S. Paulo, the company cut 119 jobs connected to its AI initiative
- Investors are focusing on a conference set for late January and the earnings report due on Feb. 24
Shares of MercadoLibre Inc dipped roughly 1.3% on Wednesday following a report from Brazilian paper Folha de S. Paulo. The report said the company cut 119 jobs, with 38 layoffs in Brazil, linked to ramping up its artificial intelligence efforts. The Nasdaq-listed stock slipped to $2,045.63, down 1.3%. 1
The headline hits at a sensitive time for major platform stocks, with investors demanding these companies prove they can automate tasks while still pushing growth. For MercadoLibre, the focus isn’t so much on the 119 job cuts but what they reveal about cost management.
This also ties into a broader debate on how fast AI tools are reshaping customer-facing roles — writing, support, marketing — jobs tough to trim without causing ripples. Markets usually react harshly to unexpected hits on execution.
The environment was shaky. Wall Street’s key indexes dropped for a second day running, dragged down by bank stocks after earnings, with losses spilling over into tech and other growth sectors. “It’s not unusual to see a little bit of a pullback,” noted Jake Johnston, deputy CIO at Advisors Asset Management. 2
MercadoLibre followed the dip seen in other internet and emerging-market growth stocks. The Invesco QQQ, tracking the Nasdaq 100, dropped roughly 1.6%. Amazon slipped 2.3%, and Sea Ltd tumbled over 4%. Nu Holdings, the Latin American digital lender, edged down 0.6%.
MercadoLibre operates an online marketplace alongside its payments and credit arm, Mercado Pago, throughout Latin America. Brazil stands as its biggest market, with investors frequently viewing the stock as a barometer for digital commerce and consumer credit across the region.
The company’s fourth-quarter results are the next major checkpoint. Investors will zero in on holiday-season demand, delivery and marketing expenses, plus how its lending business is handling credit. Even small changes in spending could quickly alter expectations.
There’s a downside angle here as well. Job cuts tied to AI often trigger concerns that growth may be slowing in some areas, or that the company is aggressively tightening margins ahead of earnings. When risk appetite fades, investors usually lean toward the more negative interpretation.
MercadoLibre’s investor calendar shows a fireside chat scheduled for Jan. 27 at UBS’s Latin America conference in São Paulo, with fourth-quarter results penciled in for Feb. 24. 3
