Added to YB: 2026-06-23
Pitch date: 2026-06-20
MELI [bullish]
MercadoLibre, Inc.
Author Info
Lorenzo's 2 cents shares analyses of tech companies. Sign up for the newsletter.
Company Info
MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally.
Market Cap
$82.9B
Pitch Price
N/A
Price Target
N/A
Dividend
N/A
EV/EBITDA
20.03
P/E
43.18
EV/Sales
2.82
Sector
Broadline Retail
Category
growth
MercadoLibre: The Market Is Missing the Jevons Paradox
MELI: Q1'26 rev +49% YoY to $8.8B (fastest in 4yrs), GMV +42%, TPV +50%, credit book +87% to $14.6B. Stock sold off on op margin 6.9% (-600bps), but 2/3 of compression from upfront credit provisioning, not structural. Brazil flywheel: items +56%, shipping costs -17%. Ads +73%. NIMAL 17.8% vs Nubank 9.5%. AI boosting search/conversion. ~$11.8B LTM FCF at 2.5x rev. Reinvestment, not damage—asymmetric upside.
Read full article (10 min)