MELI printed some absolutely stupid numbers, and the market doesn't seem to care.
u/Last-Cat-7894 ·
Reddit — r/ValueInvesting
· February 24, 2026 at 22:36
· ⬆ 58 pts
· 💬 35 comments
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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.
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I posted a long(ish)-form writeup on MELI on this sub a couple of months ago, which I'll link below if anyone wants to read it.
This quarter's results were simply incredible. Set aside the stock price and analyst's estimates for a second, and just think about the type of numbers they just put up: 47% fx-neutral revenue growth on a revenue base of \~27 billion USD. TPV growth of 52%, GMV growth of 36%, and credit portfolio growth of 90%, while retaining a NIMAL(net interest margin after losses) of 23%. Margins held mostly steady, even after enormous loan portfolio growth that penalizes margins initially, AND implementing a huge reduction in the free-shipping threshold in Brazil (their largest market by far).
Those are shock-and-awe numbers, reminiscent of what Amazon was doing in the late 2000's when AWS was first coming online, except MELI is GAAP profitable. I'm not directly comparing MELI and AMZN as businesses (they are only really comparable within their commerce segments), I'm saying the fundamental performance is as good or better than late 00's AMZN.
Well, the stock is selling off after hours from a price that was already pretty cheap (\~30x EV/EBIT on suppressed margins for >40% growth and a widening moat). Management consistently reiterates that they don't give a shit about optimizing for margins in the short term. The opportunity in LATAM is way, way too big, and it would be a waste of capital to penny pinch rather than investing in their logistics footprint and fin-tech offerings.
MELI is a \*screaming\* buy, even more than it was when I wrote my last post on it.
https://www.reddit.com/r/ValueInvesting/s/ME7KNiqomT
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.
This Reddit post, published February 24, 2026,
features u/Last-Cat-7894
discussing MELI.
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