u/Natural_West7949

MELI’s revenue grew >30% for the 29th consecutive quarter, yet the stock fell 11% on margin compression blamed on reinvestment. The repeated sell‑offs on similar news create a pattern where short‑term pessimism may be overdone, offering a potential entry for a rebound once sentiment improves. Market is pricing in margin concerns but ignoring top‑line momentum and the long‑term value of market share expansion; a contrarian long position on pullbacks aligns with the author’s implied thesis. Margin compression persists longer than expected; competition from Amazon/Shopify intensifies; macro headwinds in Latin America hurt consumer spending.