Core Insights - MercadoLibre is a promising investment due to its growth optionality, allowing it to expand into new markets despite its current size of $120 billion and a 30% increase in 2025 [1][2] Market Expansion - The company has 71 million monthly active buyers who spent over $15 billion in the last quarter, with Brazil, Argentina, and Mexico making up 96% of total sales, indicating significant growth potential in other Latin American countries [3] - Latin America has 50% more people than the United States, yet its e-commerce penetration is only half that of the U.S., highlighting a vast opportunity for growth [4] Advertising Growth - MercadoLibre increased its share of the Latin American digital ads market from 1.5% in 2019 to 6.7% in 2024, making it the third-largest advertiser in the region, with a 38% sales growth in the second quarter [5] - The Latin American retail media market is expected to triple in size between 2024 and 2028, suggesting continued growth for MercadoLibre in this segment [5] Business-to-Business (B2B) Initiatives - The company launched its B2B offering, enabling 4 million users to make wholesale purchases, with management estimating this market to be four times the size of its existing consumer marketplace [6] Fintech and Credit Services - With 68 million monthly active fintech users, MercadoLibre is positioned to disrupt the underbanked and cash-heavy payment landscape in Latin America [7] - The company has 35 million users in its credit portfolio, with 60% previously having no credit offers, and continues to grow sales by over 30% quarter after quarter [7]

Group 1 - Mercado Libre's shares experienced a significant decline of 6.8% on October 1, following a 6.6% drop on September 30, marking the largest two-day slump since November [2] - The decline is attributed to increased competition in Brazil's eCommerce market, particularly due to Amazon Brazil's decision to waive or reduce Fulfillment by Amazon fees for certain sellers during the holiday season, as well as the presence of ultra-cheap goods from Temu and Shein [2][3] - Despite the recent stock decline, Mercado Libre remains the largest eCommerce player in Brazil and Latin America, continuing to invest heavily in the region, including an expansion of its free shipping offer [3][5] Group 2 - The company reported a 34% year-over-year growth in items sold in June, driven by a lower threshold for free shipping [4] - Mercado Libre plans to increase its investment in Brazil by 48%, from approximately $3.7 billion in 2024 to about $5.8 billion in 2025, focusing on logistics, technology, marketing, and increasing its workforce by 14,000 to a total of 50,000 [6] - Additionally, the company announced a $3.4 billion investment in Mexico, its second-largest market, while not disclosing specific plans for Argentina [7] Group 3 - On September 22, Mercado Libre launched a new B2B unit in Argentina, Brazil, Chile, and Mexico, expanding its business beyond the traditional consumer market, with over 4 million users enabled for wholesale purchases [8]

Economic Indicators - US MBA mortgage applications fell by -12.7% in the week ended September 26, with the purchase mortgage sub-index down -1.0% and the refinancing sub-index down -20.6% [1] - The September ISM manufacturing index rose +0.4 to a 7-month high of 49.1, exceeding expectations of 49.0 [6] - The September ADP employment change unexpectedly fell by -32,000, marking the largest decline in 2.5 years, while August was revised lower to -3,000 from +54,000 [5] Market Reactions - Stocks initially moved lower due to the US government shutdown, but later recovered, with the S&P 500 and Nasdaq 100 reaching new all-time highs [2][4] - The dollar index fell to a one-week low, while gold prices climbed to a record high amid risk-off sentiment [2] - Rising corporate earnings expectations are a bullish backdrop for stocks, with over 22% of S&P 500 companies providing guidance for Q3 earnings that are expected to beat analysts' expectations [8] Sector Performance - Pharmaceutical stocks rallied, with AstraZeneca closing up more than +9% and Eli Lilly up more than +8%, driven by hopes from Pfizer's deal with the US government [15] - Chipmakers and AI-infrastructure stocks also saw gains, with Super Micro Computer closing up more than +9% and Micron Technology up more than +8% [16] - Grocery retailers declined after Amazon announced a new private-label food brand, leading to Dollar Tree and Dollar General closing down more than -4% and -3% respectively [22] Upcoming Economic Data - Weekly initial unemployment claims are expected to increase by +7,000 to 225,000, and August factory orders are expected to rise by +1.4% month-over-month [9] - September nonfarm payrolls are anticipated to increase by +51,000, with the unemployment rate expected to remain unchanged at 4.3% [9]

MELI is the most valuable company in LatAm despite also being one of the youngest listed entities in the region, only turning 26 this year.Striving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.Analyst’s Disclosure:I/we have a beneficial long position in the shares of MELI either through stock ownership, options, or ...

MELI is the most valuable company in LatAm despite also being one of the youngest listed entities in the region, only turning 26 this year.Striving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.Analyst’s Disclosure:I/we have a beneficial long position in the shares of MELI either through stock ownership, options, or ...

For a diversified business like MercadoLibre, Inc. (NASDAQ: MELI ), a Buy thesis is not about the scope and market size. That is known and acknowledged. An analysis of MercadoLibre should be more around what kind of scenarios are required for theI am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice Pres ...

Core Insights - MercadoLibre, Inc. (NASDAQ:MELI) is recognized as one of the stocks expected to double in value over the next five years [1] - Cantor Fitzgerald has raised its price target for MercadoLibre from $2,700 to $2,900, maintaining an Overweight rating, citing strong growth prospects despite recent underperformance [2] - The company launched a new B2B division aimed at corporate clients, targeting a market estimated to be four times larger than the consumer e-commerce sector [3] Group 1: Financial Performance and Market Position - MercadoLibre has shown strong year-to-date gains and is currently trading at a 52-week high, despite underperforming the NASDAQ by 4 points since Q2 due to macroeconomic and margin concerns [2] - The company operates various online commerce platforms and fintech solutions, including Mercado Libre Marketplace and Mercado Pago, across key Latin American markets such as Brazil, Mexico, and Argentina [4] Group 2: Strategic Developments - The launch of the new B2B division positions MercadoLibre to capture significant market share in a sector much larger than its current consumer-focused operations [3] - The favorable economic conditions in Argentina and the company's strong regional footprint contribute to its attractiveness for investors [3]

JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attracti ...

Core Insights - Loomis Sayles Global Growth Fund achieved a return of 16.61% in Q2 2025, outperforming the MSCI ACWI Index Net which returned 11.53% [1] - The fund focuses on investing in high-quality businesses with sustainable competitive advantages, particularly those trading at significant discounts to intrinsic value [1] Company Overview: MercadoLibre, Inc. - MercadoLibre, Inc. is the largest online commerce platform in Latin America, offering a comprehensive ecosystem of six integrated e-commerce services [3] - The company reported that commerce and related services accounted for approximately 59% of net revenue, while payments and fintech solutions made up about 41% [3] - As of September 29, 2025, MercadoLibre's stock closed at $2,501.31 per share, with a market capitalization of $126.81 billion [2] Market Position and Growth Potential - MercadoLibre operates in 18 countries, covering a significant portion of Latin American GDP, and has 218 million active users, representing over 45% of the region's estimated 480 million total internet users [3] - The company is well-positioned for sustained growth over the next decade, driven by increasing internet access, credit availability, and ongoing investments to enhance online transaction convenience [3]

Core Insights - MercadoLibre, Inc. (NASDAQ:MELI) is recognized as one of the 12 stocks with consistent growth potential, launching a new B2B unit following strong Q2 results [1][2]. Financial Performance - In Q2 2025, MercadoLibre reported a 30% year-over-year revenue increase, totaling $825 million in income from operations [2]. - The company successfully attracted new users and increased engagement by lowering the free shipping threshold in Brazil [2]. Business Expansion - The launch of a new business-to-business (B2B) unit on September 22, 2025, aims to capture the expanding Latin American market, covering key countries such as Brazil, Argentina, Mexico, and Chile [3]. - The B2B e-commerce market is significantly larger, being four times the size of the global B2C e-commerce market in terms of volume sold [3]. Market Position - MercadoLibre has demonstrated dominant growth in Latin American e-commerce and fintech, achieving an impressive 10-year performance increase of 2269.18% [4]. - Founded in 1999, the company operates a comprehensive ecosystem that includes a marketplace, logistics network, and financial services platform through Mercado Envios and Mercado Pago [4].