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Biotech2k

Biotech Investor, AI-Driven Drug Discovery

27 Oct, 14:45Latest

MercadoLibre's collapsing margins and earnings make its 45-times-earnings valuation look like a value trap. It faces intense competition, and less of its revenue reaches the bottom line; falling earnings make the stock more expensive even as its price falls. Nu Holdings trades at 17 times earnings and Inter & Co at 7 times, with both growing revenue and earnings robustly. Selling MercadoLibre to build positions in companies with better fundamentals is under consideration. x.com x.com x.com x.com

MELI

9 Jun, 20:55

MercadoLibre is a top-quality company that looks cheap on cash flow: about $12 billion of operating cash flow less $1.4 billion of capex leaves roughly $10.8 billion of free cash flow, a 13% yield on its $83 billion market cap, where anything over 10% is a winner. Against an intrinsic value of about $2,000, though, a price near $1,650 is only a 17.5% discount, short of the 20% margin of safety needed; below $1,500 it becomes a buy. x.com x.com

MELI

RocketMan

Space Investor, Rocket Lab Focus

27 Oct

MELI

Political uncertainty and Amazon competition have held MercadoLibre's stock back despite a humming business. The company is great and the stock deserves to turn, but at roughly 45 times earnings and only about 12% gained over five years, it has remained a difficult stock to own. x.com x.com x.com x.com

Michael Sikand

Investor, Autopilot Portfolio, Founder of Sikand Media

26 Oct

MELI

South American political unpredictability keeps investors from rewarding MercadoLibre's excellent fundamentals. Today's selloff illustrates that risk, despite the strength of the business. x.com x.com

Gabz

Stock & Crypto Trader, SuperTrend Indicator Owner

26 Oct

MELI

EWZ

Latin American equities' sell-off looks overdone as long as the underlying businesses keep growing and fundamentals remain intact. Under that condition, the drop is market noise, and MercadoLibre and Nu Holdings could offer attractive opportunities amid the panic. x.com

Waterworld Capital

Public Markets Commentary

8 Jul

MELI

MercadoLibre is a short because credit is deteriorating in its finance business and e-commerce competition in Brazil is pressuring margins, while it trades at a huge premium to anything comparable. x.com x.com

Arrakis Global

Global Thematic Fund Manager

8 Aug

MELI

MercadoLibre can tread water for a long time because it constantly has to spend to defend its revenue base. It is a very capital-intensive business trading at more than 40x forward earnings, leaving it vulnerable if revenue ever slows. x.com

Andres Cardenal

CFA, Economist & Financial Analyst, Investment Columnist

29 Oct

MELI

MercadoLibre's commerce and fintech revenue growth underpins the view that its shares are undervalued at current prices. The attached chart shows quarterly commerce services revenue reaching $4.3 billion and fintech revenue $4.4 billion in June 2026, up from $769 million and $467 million in March 2021. x.com

Paradis

AI & Technology Investment Research

8 May

MELI

MercadoLibre ranks C tier among large-cap tech after Q1 earnings because margin contraction and heavy investment are pressuring its free cash flow outlook. Its top line keeps growing, but there are no AI tailwinds to offset the drag from logistics and credit spending into 2027. The ranking weights forward visibility and AI exposure, placing MercadoLibre alongside Apple and below names like Alphabet, AMD and Amazon, despite once being very bullish on it. x.com

Bill 'Latency Lord' Brennan

Fundamental Growth Investor, B2B/Sector Leaders & Picks-and-Shovels

20 Oct

Sea Limited's strong execution and regained management trust make the beaten-down stock a buy here. After a rough two years following Covid, it faces less competition in its home markets than Amazon or MercadoLibre face in theirs, yet its stock trades very low. Existing holders should be loading up or question their conviction; long-term margins remain uncertain for both Sea and MercadoLibre. x.com

peony

Equity Investor & Researcher

14 Oct

MELI

MercadoLibre seems cheap at roughly 3x enterprise value to sales given revenue is up about 700% while its stock price is back at 2020 levels. It is hard to see how the multiple can keep compressing. x.com

Finance Jack

Equity Research

26 Oct

Nu Holdings' growth under Lula makes today's selloff look absurd. On a TTM basis since Q1 2023, revenue rose 270% and net income went from a $180 million loss to $3.61 billion, or $0.74 EPS; having done so well during his term, it should be fine going forward. x.com x.com x.com

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