Summary
- Mercado Libre remains a buy due to strong execution and a dominant ecosystem, despite recent stock weakness and competitive pressures.
- MELI faces heightened competition, notably from Amazon and Chinese players, but continues to outpace peers in logistics, digital experience, and fintech integration.
- Q3 results showed robust growth in GMV, active buyers, and fintech users, though margins and EPS missed expectations due to increased costs and competition.
- Valuation is high, but MELI’s superior growth rates and operational leverage support long-term compounding potential and justify the premium.
Leila Melhado/iStock Editorial via Getty Images
In my [last article](https://seekingalpha.c…
Summary
- Mercado Libre remains a buy due to strong execution and a dominant ecosystem, despite recent stock weakness and competitive pressures.
- MELI faces heightened competition, notably from Amazon and Chinese players, but continues to outpace peers in logistics, digital experience, and fintech integration.
- Q3 results showed robust growth in GMV, active buyers, and fintech users, though margins and EPS missed expectations due to increased costs and competition.
- Valuation is high, but MELI’s superior growth rates and operational leverage support long-term compounding potential and justify the premium.
Leila Melhado/iStock Editorial via Getty Images
In my last article on Mercado Libre (MELI), I reiterated a buy after earnings, and my thesis was that although the valuation was a little worrying, the growth potential justified it, and the company’s
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