Martin de los Santos 1.8 1 idea

MercadoLibre stock is down ~14% YTD and dropped on earnings due to a net income miss caused by heavy CAPEX in logistics and credit. Revenue grew 45% YoY. The CFO argues that LATAM e-commerce penetration is only 15% (vs. 35% in China). The margin compression is a deliberate choice to capture market share and build a "moat" (logistics network) that competitors cannot match. The sell-off on margin compression offers a discount on a high-growth asset. LONG. The thesis is a classic "Amazon in 2015" play—sacrificing current profits for dominant future market share. Continued margin pressure from credit portfolio defaults or prolonged heavy spending without adoption.