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 

MercadoLibre is worth owning for 20 years because its marketplace, payments, credit and advertising reinforce one another, with a long reinvestment runway in underpenetrated Latin American e-commerce and digital finance. Quarterly revenue grew 50% despite its scale, making about 40x earnings very reasonable for its quality. A deep management bench under CEO Ariel Szarfsztejn reduces founder dependence. Risks include credit underwriting, competition from Sea and Amazon, currencies and regulation. … Show more

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 

MercadoLibre's long-term thesis looks intact: heavy reinvestment is holding down near-term margins, but if it drives continued growth and eventually operating leverage, margins and earnings could expand substantially. The stock was extremely expensive five years ago, and its valuation has compressed significantly since. As with Amazon, the market doesn't trust the spending yet, but Meta showed how fast that can change. x.com  x.com 

MercadoLibre has reaccelerated as it scaled, a rare combination of scale and growth. Quarterly revenue has climbed from $474M in 2019 to over $10B, a 21x increase, yet it is still growing around 49%. x.com  x.com 

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 

MercadoLibre's Brazilian marketplace lead continues to consolidate while delivery costs per order are falling. Its GMV share is 40.5%, against Shopee's 19.8% and Amazon's 11.7%; Amazon is slightly losing share. The numbers also back the company's comments on lower delivery costs. x.com  x.com  x.com 

MercadoLibre's growth under Lula makes today's selloff look absurd. On a TTM basis since Q1 2023, revenue is up 206% and EPS 200%; having done so well during his term, it should be fine going forward. x.com  x.com 

MercadoLibre may not be a buy yet, since its margin-compressing investment cycle looks set to run for a while. An AI-assisted review of gross and operating margins against prior investment cycles points that way, after a first read of the risk/reward had looked like a buy. The stock is worth revisiting at the end of the year. x.com  x.com 

MercadoLibre is the backbone of Latin American digital commerce, and its ecosystem keeps feeding its own growth. E-commerce, Mercado Pago payments, credit, logistics and advertising reinforce each other, as more users bring more transactions, more data and better monetization. Execution is elite, with about 39% revenue growth, about 52% free cash flow growth and expanding margins. The valuation is not cheap, but great businesses rarely are, and this is what long-term compounding looks like. … Show more