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MercadoLibre
NASDAQ: MELI Consumer Discretionary Consumer 🔎 Screen
Nasdaq 100
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$91.2B
Market Cap
51.1
P/E
1.26
PEG
28.2%
ROCE
36.0%
ROE
1.69
D/E
11.1%
OPM
-27.5%
% from 52W High
34
α RS
🔍 MELI is showing a high-conviction setup because it matches 15 of 39 tracked screener presets, an ECS of 57.1 last quarter, and canslim_filter preset's Backtest win rate is 66.2% over 90 days. Net: Broad signal stack, not a recommendation. ? Conviction ECS Backtest
Sources
Conviction 15/39 · ECS 57.1 · Backtest win rate 66.2%
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🌏 Global Investor Returns
Currency-adjusted total returns for MELI including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates Mercado Libre Marketplace, an online commerce platform that can be accessed through mobile app or website; and Mercado Pago, a financial technology solution platform, which offers comprehensive set of financial technology services to users and other users of its e-commerce platform. It also provides Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which grants loans and obtains better funding alternatives; and Mercado Mercado Envios that facilitates the shipping of goods from the Company and sellers to buyers. In addition, the company provides Mercado Libre Classifieds, where users can list vehicles, properties, and services; Mercado Ads, an advertising platform, which enables retailers and brands to promote their products and services on the platform. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding MELI
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Manager Shares Value % of Fund Period
Tiger Global Management Tiger Global Management LLC 135.0K $233.4M 1.02% Mar 2026
Jim Simons Renaissance Technologies LLC 120.3K $208.0M 0.33% Mar 2026
Cathie Wood ARK Investment Management 24.0K $41.5M 0.32% Mar 2026
Stan Druckenmiller Duquesne Family Office 2.8K $4.8M 0.14% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$10.0B
+50% YoY
Operating Income
$683M
N/A
Operating Margin
6.7%
-550bps YoY
What Went Right
  • Revenue surpassed $10 billion for the first time, growing 50% YoY
  • Credit portfolio reached $16.4B, up 75% YoY, with NIMAL improving to 21% from 18% QoQ
  • Brazil engagement inflected: items per buyer +19%, conversion +1.1pp, and daily actives growing faster every quarter
What to Watch
  • Operating margin fell 550bps YoY as management deliberately prioritised investment over near-term profit
  • Acquiring margin compressed, mainly from Mexico device restocking and higher memory-chip costs
  • Mexico growth faced tax reform, softer macro, and World Cup demand headwinds; 90-day NPL ticked up, though 15-90 day NPLs were stable
Management Guidance
  • No explicit revenue guidance was provided on the call
  • No explicit operating income or margin guidance was provided
  • Management expects to maintain its disciplined investment approach, with sequential margins broadly stable and credit profitability improving
Investor Lens
The thesis is stronger after this quarter: revenue scaled past $10B, the Brazil free-shipping investment is driving durable engagement, and the expanding credit book remains profitable with NIMAL at 21%. The deliberate 550bps YoY margin decline is the cost of that flywheel, but management sees a clear path to long-term profitability. Mexico is the main near-term watch item, while AI costs are being offset by productivity and revenue gains. No formal guidance was given, so investors should brace for continued investment-driven margin variability.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: record $10B revenue, +50% YoY, with near-record-low NPLs
Revenue
Net revenue surpassed $10 billion for the first time, growing 50% year-on-year. Brazil items grew 56%, CBT GMV grew ~60%, and advertising grew 73% YoY, supported by stronger engagement and a larger ecosystem.
Profitability
Operating income was $683 million, representing a 6.7% margin. Net income was not disclosed on the call; management emphasised that margin pressure was a deliberate choice to fund long-term engagement and growth.
Margins
EBIT margin was 6.7%, down 550bps YoY but broadly stable sequentially. OpEx diluted 2.5 points quarter-over-quarter, while credit NIMAL improved from 18% to 21% due to normalising provisions in Brazil.
Balance Sheet
Adjusted free cash flow was $214 million, after absorbing $441 million of capex and $2.1 billion invested in the credit book. Management said the balance sheet remains healthy, although cash and debt levels were not quantified.
Key Risks
Management flagged Mexico's tax reform, softer macro and World Cup demand headwinds, plus acquiring margin pressure from higher device and chip costs. Analysts also questioned the 90-day NPL uptick, though management attributed it to product mix and issuance pace rather than broad deterioration.
Outlook
No formal guidance was provided; management expects to continue investing at current levels while monitoring Mexico and credit conditions. Credit card cohorts should mature toward NIMAL breakeven in 12-18 months, with Brazil paybacks as the key reference.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Net revenue grew 50% year-over-year to over $10 billion, driven by strong engagement and ecosystemic user growth. Strategic investments in AI, credit, and logistics supported scale, while margins remained stable sequentially despite ongoing cost pressures.
Q1 2026 Q1 2026 2026-05-07
Q1 2026 saw 49% year-over-year revenue growth, record GMV and fintech expansion, and continued margin compression due to bold investments in logistics, credit, and free shipping, especially in Brazil. Engagement and market share reached new highs across key markets.
Q4 2025 Q4 2025 2026-02-24
Q4 2025 saw 45% revenue growth year-over-year, with strong commerce and fintech momentum, record NPS, and accelerated AI-driven advertising. Margin pressure stems from strategic investments, but all business units are expanding rapidly into 2026.
Q3 2025 Q3 2025 2025-10-29
Revenue grew 39% year-over-year, with accelerated GMV and user growth driven by strategic investments in free shipping, logistics, and credit cards. Operating income rose 30%, while margin pressure is expected to ease as scale increases.
Q2 2025 Q2 2025 2025-08-04
Q2 2025 saw over 30% revenue growth and record operating income, driven by strong commerce and fintech performance, especially in Brazil and Mexico. Lower free shipping thresholds and fee reductions boosted user engagement, while fintech and advertising segments delivered robust growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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