MELI: Revenue Up 49%, Stock Down 40% — in a High-Growth Stock is the Dip an Entry Point?

Been digging into MercadoLibre after the selloff and the setup is hard to ignore. The stock's down \~40% to near a 52 week low, and everyone's fixated on the margin cause operating margin fell from 13.5% to 6.9% in about a year. I think that's being misread. Two thirds of that drop is just the cost of reserving against a credit book that nearly doubled (+87% to $14.6B). MELI books the expected loss the moment it writes a loan; the interest income arrives over the following months, so a fast growing book looks unprofitable today even as each cohort seasons into profit. It's the same accounting Klarna spelled out for its own loan book on Q1 2026, provision the loss upfront, book the revenue over the life of the loan, so a rising provision line on a fast-growing book doesn't mean rising defaults. The rest is a deliberate Brazil free-shipping cut and a first-party inventory push to fight off Shopee and Temu. Through all of it, revenue still grew 49% and operating income still grew in absolute dollars. That's reinvestment, not deterioration and MELI ran the same play in 2016 to build the logistics lead it has today. Meanwhile, with margins sitting at a deliberate trough, the stock trades at: * \~3x EV/sales, vs a \~10x historical average * a forward P/E in the low-30s, vs a 62x peak last October * a PEG below 1, on revenue growing \~49% The market's pricing a near 50% grower like a slow retailer whose best days are behind it. I won't pretend it's as good as catching a company right at its first profit print (Chime recently after Q1 2026 earnings) that's the real asymmetry. This is the second best setup: a dip in a proven compounder that dominates LatAm e-commerce and fintech. Curious if anyone else has been looking at it. Am I missing something obvious on the credit risk? Would you buy it at $1600? Disclosure: This is my personal thesis, not investment advice. I am not a registered investment adviser. Do your own research and size positions according to your own risk tolerance