Added to YB: 2026-08-18
Pitch date: 2026-08-14
MELI [neutral]
MercadoLibre, Inc.
-1.96%
current return
Author Info
No bio for this author
Company Info
MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally.
Market Cap
$93.5B
Pitch Price
$1.8K
Price Target
N/A
Dividend
N/A
EV/EBITDA
22.69
P/E
50.20
EV/Sales
2.87
Sector
Broadline Retail
Category
growth
The Price of Mercado Libre's Dominance
MELI (overview): Q2'26 rev >$10B first time, +43% FX-neutral, but op margins -550bps spooked Street. Author disputes competitive erosion thesis — margin compression is deliberate reinvestment (240bps credit provisioning drag) issuing cards (+62% YoY) to build sticky 'ecosystem users' (+37%, 70% more GMV). Credit portfolio +75% to $16.4B, NIMAL negative on card mix but core >20%, 98% loans <4mo duration. Ad/AI/CBT/Mexico fintech tailwinds. Risks: govt intervention, credit shock, Shopee flywheel copy in Brazil.
Read full article (15 min)