MELI reported "absolutely stupid numbers": 47% FX-neutral revenue growth, 52% TPV growth, and 90% credit portfolio growth, while maintaining profitability and strong net interest margins (23% NIMAL). The market is reacting negatively or indifferently to this phenomenal fundamental performance, causing the stock to sell off from what the author already considered a cheap valuation (~30x EV/EBIT). This disconnect between business performance and stock price creates a compelling entry point. The author believes MELI is a "screaming buy" due to its exceptional growth, profitability, widening moat in a large addressable market (LATAM), and a management team focused on long-term investment over short-term margin optimization. Potential risks include margin compression from aggressive investments (e.g., lower free-shipping thresholds), macroeconomic headwinds in Latin America, and increasing competition.
TLDR
=== SUMMARY ===
- The post highlights MercadoLibre's (MELI) exceptional quarterly results, including 47% FX-neutral revenue growth and strong performance across all key business segments (commerce, payments, credit).
- The author argues that despite these "shock-and-awe" numbers, the market is mispricing the stock by selling it off, creating a significant buying opportunity for a high-growth, profitable company with a widening moat.
- Quality assessment: This is a strong opinion piece backed by specific performance metrics from the company's latest earnings report. It's not deep-dive due diligence (DD) but is well-informed and thesis-driven.
=== SENTIMENT ===
BULLISH
=== TRADE IDEAS ===
MELI - LONG | confidence: 0.95 | sentiment: +1.00
Speaker: u/Last-Cat-7894
Thesis:
1. THE FACT: MELI reported "absolutely stupid numbers": 47% FX-neutral revenue growth, 52% TPV growth, and 90% credit portfolio growth, while maintaining profitability and strong net interest margins (23% NIMAL).
2. THE BRIDGE: The market is reacting negatively or indifferently to this phenomenal fundamental performance, causing the stock to sell off from what the author already considered a cheap valuation (~30x EV/EBIT). This disconnect between business performance and stock price creates a compelling entry point.
3. THE VERDICT: The author believes MELI is a "screaming buy" due to its exceptional growth, profitability, widening moat in a large addressable market (LATAM), and a management team focused on long-term investment over short-term margin optimization.
4. RISKS: Potential risks include margin compression from aggressive investments (e.g., lower free-shipping thresholds), macroeconomic headwinds in Latin America, and increasing competition.
Timeframe: long-term
Key Points:
- 47% FX-neutral revenue growth on a large base
- Strong growth in payments (TPV) and credit portfolio
- Management prioritizes long-term growth over short-term margins
- Stock is selling off despite stellar results
- Val
Key Points
['47% FX-neutral revenue growth on a large base', 'Strong growth in payments (TPV) and credit portfolio', 'Management prioritizes long-term growth over short-term marg', 'Stock is selling off despite stellar results', 'Valuation is considered cheap for its growth profile']
February 24, 2026 at 22:36