🚨JUST IN: MERCADO LIBRE TO PHASE OUT MERCADO COIN REWARDS TOKENLatin America’s largest e-commerce platform is reportedly shutting down Mercado Coin, according to CoinTelegraph.The loyalty token was launched back in August 2022. It offered cashback and perks to users on purchases.Mercado Libre has set a firm deadline for users. Balances must be sold or spent via Mercado Pago. If not, funds will be converted into Brazilian reals. ...

Latin America’s Mercado Libre Pulls the Plug on Its Crypto Coinhttps://t.co/wmF5HYy2i2 ...

Core Insights - Mercado Pago, the fintech arm of MercadoLibre, is discontinuing its cryptocurrency Mercado Coin, which was launched in 2022 as part of its loyalty program [1][2] - The focus has shifted to "Meli Dolar," a stablecoin pegged to the U.S. dollar, available in Brazil, Mexico, and Chile [2] - Remaining balances of Mercado Coin must be utilized or sold by April 17, or they will be converted to Brazilian reais [3] Group 1 - Mercado Coin was introduced as a cashback incentive for customers in Brazil, the primary market for MercadoLibre [2] - The discontinuation of Mercado Coin is part of a strategic evolution in the company's approach to cryptocurrency [2] - The transition to Meli Dolar indicates a shift towards more stable digital currency offerings [2]

Core Insights - Mercado Libre is phasing out its in-house cryptocurrency offering, Mercado Coin, which will no longer be available for buying, selling, or earning cash back starting April 17, 2023 [2][3] Company Overview - Mercado Coin was launched in 2022 to reward users for purchases on the Mercado Libre platform, initially starting in Brazil before expanding to other markets [2] User Options - Users holding Mercado Coin can still sell the tokens through the app, use them as purchase credits on the marketplace, or wait for automatic conversion into fiat currency, which will be deposited into their accounts [3] Industry Context - The decision to phase out Mercado Coin comes amid a broader trend where many tech companies are reevaluating their strategies regarding branded digital assets [3]

Company Overview - Generation Investment Management released its "Global Equity Strategy" fourth quarter 2025 investor letter, emphasizing the importance of patient, quality-focused investing in a market shaped by uncertainty and distortion [1] - The firm believes its portfolio is well-positioned for future success, as current trends driving underperformance will ultimately lead to better results [1] - As of December 31, 2025, the Global Equity strategy has total assets under management of USD 21.0 billion [1] Market Insights - The research indicates that sectors in AI will provide long-term value, especially as global computing demands increase, potentially tripling if a third of internet users engage with AI via voice for 20 minutes daily [1] - The market currently penalizes strong companies that do not participate in the 'beat and raise' game [1] Focus on MercadoLibre, Inc. - MercadoLibre, Inc. (NASDAQ:MELI) is highlighted as a leading online commerce platform in Latin America, with a market capitalization of USD 82.09 billion [2] - The stock closed at $1,619.20 per share on March 30, 2026, with a one-month return of -5.53% and a 52-week loss of 15.45% [2] - Generation Investment's investment in MercadoLibre began over a decade ago, believing it could become the core digital infrastructure for Latin America, and considers it an outstanding business with deep moats [3] Leadership and Company History - MercadoLibre was founded in 1999 by Marcos Galperin, who led the company for 25 years, making it Latin America's most valuable listed company with a market cap exceeding USD 100 billion [4] - Galperin stepped down as CEO at the end of 2025 but remains as executive chairman, while Ariel Szarfsztejn, who joined in 2017, is the new CEO [4] Operational Highlights - MercadoLibre operates in 18 countries, with strong positions in Brazil, Argentina, and Mexico, where independent merchants list on the platform and the company takes a commission [5] - In 2024, Mercado Envios, its logistics solution, handled 1.8 billion shipments, roughly doubling its 2020 figures [5]

Group 1 - MercadoLibre (NASDAQ: MELI) is approaching discount territory, having fallen almost 40% from its all-time high and nearly 20% year to date [3][8] - The stock market selloff creates long-term buying opportunities in strong companies, and MELI's valuation compression may provide an entry point for sidelined investors [4] - As the leading e-commerce and fintech platform in Latin America, MercadoLibre connects millions of buyers and sellers across 18 countries, offering a vast online marketplace and financial services [5] Group 2 - MercadoLibre has consistently grown sales and expanded its footprint across Latin America, topping revenue estimates quarter after quarter [6] - In Q4 2025, MELI reported a 12.5% decline in quarterly profits, missing expectations, but this was due to increased long-term investments rather than business deterioration [7] - Despite the stock's decline, revenue surged 45% year over year to $8.8 billion in Q4, with a consensus Moderate Buy rating from 19 analysts and a price target implying nearly 67% upside [8]

Core Viewpoint - MercadoLibre has experienced significant stock growth historically, but recent competition and margin pressures have led to a sharp decline in stock price [1][4]. Company Performance - Since its IPO, MercadoLibre has achieved a stock growth of 5,500%, but the stock is currently down 40% from its peak [1][2]. - In the fourth quarter, the company reported a revenue increase of 45%, reaching $8.76 billion, although operating margins fell from 14.6% to 10.1% due to strategic investments [3][4]. Competitive Landscape - The company faces competition from Amazon and Sea Limited's Shopee, but it has built competitive advantages through its interconnected businesses, including a third-party marketplace, digital payments, logistics, and a credit business [5][7]. - MercadoLibre's subscription program, MELI+, offers benefits similar to Amazon Prime, enhancing customer loyalty [5]. Market Position and Future Outlook - Despite recent sell-offs, MercadoLibre is pursuing growth opportunities in Latin America, particularly in Brazil, Mexico, and Argentina [4]. - The company does not provide guidance, which adds to investor concerns, but its strong sales growth in a developing market suggests resilience against disruption [8]. - The stock is currently priced at a price-to-earnings ratio of 40, indicating it may be well-priced for its growth potential [8].

Core Insights - MercadoLibre (MELI) is the leading e-commerce and fintech platform in Latin America, while Sea Limited (SE) operates Shopee, a major e-commerce marketplace in Southeast Asia, both focusing on emerging markets and integrating online retail with fintech ecosystems to enhance user engagement [1][2] MercadoLibre (MELI) - MercadoLibre holds over 30% market share in key Latin American countries such as Brazil, Argentina, and Mexico, benefiting from low digital adoption which supports long-term growth potential [2][3] - The company has a well-integrated ecosystem that combines marketplace, logistics, and fintech, with 75% of deliveries made within 48 hours, enhancing user experience and reducing costs [3] - Mercado Pago, the fintech arm, has 78 million monthly active users and a $12.5 billion credit portfolio as of Q4 2025, with AI-driven tools improving monetization and operational efficiency [3] - The growth of e-commerce in Latin America is slower than in developed markets, presenting opportunities for expansion, while fintech growth is driven by financial inclusion due to low credit card penetration [4] - Despite aggressive investments impacting margins, MercadoLibre prioritizes long-term scale and ecosystem dominance over short-term profitability [5] - The Zacks Consensus Estimate for MELI's 2026 earnings is $52.27 per share, reflecting a 32.66% year-over-year increase despite a recent 13% downward revision [6][7] - Year-to-date, MercadoLibre's stock has declined by 18.6%, outperforming Sea Limited's 35.3% drop, supported by balanced growth in e-commerce and fintech [12][13] Sea Limited (SE) - Sea Limited faces challenges in its e-commerce and fintech segments, with profitability under pressure from high operating costs and rising risk exposure [8] - In Q4 2025, costs grew 40.4% year-over-year, outpacing revenue growth, indicating significant operational intensity and margin pressure [8] - Marketing expenses increased by 33.6%, highlighting reliance on promotions to attract users, while revenues from value-added services declined due to shipping subsidies [8] - In fintech, rapid credit expansion has raised risk levels, with provisions for credit losses increasing by 66.7% year-over-year, indicating higher exposure to potential defaults [9] - Despite these challenges, Sea Limited reported Shopee's GMV of $127 billion in 2025, supported by strong user engagement and a growing logistics network [10] - The Zacks Consensus Estimate for SE's 2026 earnings is $4.85 per share, reflecting a 6% decrease over the past 30 days [11] Comparative Analysis - MercadoLibre is trading at a forward price-to-sales (P/S) multiple of 2.06X, while Sea Limited's P/S multiple is 1.54X, indicating a valuation premium for MELI supported by strong growth and network effects [16] - MercadoLibre is better positioned than Sea Limited due to stronger ecosystem integration, improved logistics efficiency, and balanced growth between commerce and fintech [19] - Analyst confidence is reflected in the Zacks Rank, with MercadoLibre at 3 (Hold) and Sea Limited at 4 (Sell), suggesting lower confidence in SE's near-term performance [20]

Core Insights - MercadoLibre (MELI) is often referred to as the "Amazon of Latin America," highlighting its dominant position in the e-commerce market, where it competes effectively against Amazon and low-cost Chinese competitors [1] Group 1: Company Overview - MELI holds a significant and growing market share in the e-commerce sector, indicating strong competitive advantages [1] - The company is characterized by a focus on sustainable long-term growth, shareholder-friendly capital allocation, and low dilution [1] Group 2: Investment Philosophy - The investment philosophy emphasizes the importance of steady, long-term compounding over speculative investments, targeting companies with a long growth runway [1] - The methodology involves deep fundamental analysis to identify asymmetric risk opportunities, where the market may misjudge a company's competitive edge or future potential [1] Group 3: Current Holdings and Goals - Current high-conviction holdings include Uber, Google, and Brookfield, with a goal to achieve an annualized portfolio compounding rate of 15% or higher [1] - The approach to market analysis is rigorous and quantitative, utilizing data-driven models to evaluate valuations under various market scenarios [1]

Group 1 - The S&P 500 is expected to experience a significant short-term bounce of approximately 5% following recent comments from U.S. President Donald Trump [1] - Amrita leads a boutique family office fund in Vancouver, focusing on sustainable, growth-driven companies that aim to maximize shareholder equity [1] - The fund's investment strategy is complemented by Amrita's award-winning newsletter, The Pragmatic Optimist, which emphasizes portfolio strategy, valuation, and macroeconomics [1] Group 2 - Amrita has a background in high-growth supply-chain start-ups in San Francisco, where she developed strategies that enhanced user acquisition and client returns during the pandemic [1] - The core mission of Amrita's work is to democratize financial literacy and simplify complex financial concepts for broader accessibility [1] - Her newsletter has been recognized as a top finance newsletter on popular platforms, indicating a strong influence in the financial community [1]