Added to YB: 2026-04-16
Pitch date: 2026-04-14
MELI [neutral]
MercadoLibre, Inc.
+3.9%
current return
Author Info
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Company Info
MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally.
Market Cap
$97.5B
Pitch Price
$1.9K
Price Target
2.4K (+24%)
Dividend
N/A
EV/EBITDA
23.58
P/E
52.32
EV/Sales
2.98
Sector
Broadline Retail
Category
growth
Deep Dive: Mercado Libre ($MELI)
MELI (deep dive): LatAm's digital infrastructure for commerce, credit & financial services (650M people). Trading ~30% below ATH on margin compression from shipping wars (Shopee/Temu) & credit book concerns ($12.5B, +90% YoY). Q4 rev +45% YoY, but margins fell to 9% from 13.5% on R$19 free shipping threshold. Fintech: 78M MAUs, $18.8B AUM, most-used card in Brazil. Ads +67% YoY. Near-term risks: unseasoned credit, Amazon-Nubank partnership, FX headwinds, margin recovery delayed to 2027. Long-term: LatAm retail only 12-15% online vs 45% China; 300M underbanked; advertising at 4x industry CAGR. PT $2,400 base, $1,500 bear. Hold until margins stabilize.
Read full article (12 min)