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]