MercadoLibre is aggressively investing in fulfillment, driving record top line growth but causing margin compression and a 17% YTD share price decline. MELI's Q1'26 GMV surged 42% Y/Y, with Brazil leading at 54% Y/Y growth and accounting for over half of total revenue. Despite a 20% Y/Y drop in operating income and a 6 PP margin contraction in Q1'26, MELI's scale investments are expected to boost long-term market share and profitability.