Core Insights - MercadoLibre (MELI) and Wayfair (W) are prominent e-commerce companies operating in different markets, with MercadoLibre leading in Latin America and Wayfair focusing on the U.S. furniture and home goods sector [1][2] MercadoLibre Overview - MercadoLibre holds over 30% market share in key Latin American markets such as Brazil, Argentina, and Mexico, indicating significant long-term growth potential due to the region's underpenetrated online retail and digital payments [4] - In Q4 2025, MercadoLibre's revenues surged by 45%, driven by growth in its commerce segment and fintech services, with a notable increase in purchase frequency due to lowered free-shipping thresholds [5] - The total payment volume for Mercado Pago reached $83.7 billion, reflecting a 42% year-over-year increase, while its credit portfolio expanded by 90% to $12.5 billion, enhancing customer loyalty and monetization [6] - Despite margin pressures from investments in shipping and promotions, management prioritizes long-term ecosystem growth over short-term profits, although competition from Amazon and others is intensifying [7] - The Zacks Consensus Estimate for MELI's Q1 2026 earnings is $13.87 per share, indicating a 42.4% year-over-year increase, which supports confidence in the company's growth trajectory [8] Wayfair Overview - Wayfair reported a 6.9% revenue growth in Q4 2025, reaching $3.3 billion, with improved contribution margins due to better cost control and operational efficiency [11] - The company benefits from a strong logistics network and engaging shopping experience, with programs like Wayfair Rewards driving repeat purchases [12] - The Zacks Consensus Estimate for Wayfair's Q1 2026 earnings is $0.28 per share, suggesting a strong year-over-year growth of 180% [13] Price Performance & Valuation - Over the past year, MercadoLibre's stock has decreased by 16.7%, while Wayfair's shares have surged by 91.7%, outperforming both MercadoLibre and the broader sector [14] - MercadoLibre trades at a forward Price/Sales ratio of 2.29, above the industry average of 1.93, while Wayfair's ratio is 0.75, indicating a cheaper valuation [18] - Despite Wayfair's recent profitability improvements, MercadoLibre is viewed as offering better long-term investment potential due to its market dominance and growth in fintech [21]

Group 1: Core Business Performance - The company reported a 67% growth in its advertising business, driven by AI-powered bidding algorithms and automated marketing tools that improved return for sellers and increased adoption rates [1] - The company expressed confidence in capturing traffic through its internal agent experience, viewing advertising as an additional revenue opportunity in the agent-based e-commerce landscape [6][21] - The company achieved record net promoter scores in e-commerce and fintech across Argentina, Brazil, and Mexico, indicating strong user satisfaction and engagement [3] Group 2: Cross-Border and Fulfillment Challenges - Local fulfillment in cross-border operations is profitable, but international fulfillment needs to scale, which will continue to exert pressure on profitability [2] - The company clarified that investments in free shipping thresholds and credit card offerings have impacted profit margins by 5 to 6 percentage points, with ongoing investments in cross-border operations and credit cards [2] Group 3: AI Deployment and User Experience - The company is focused on developing its own agent experience internally, leveraging first-party data to create personalized search and recommendation engines [6][21] - AI is being deployed across various functions, including demand and search, with a significant portion of GMV benefiting from AI-driven seller assistants [8][9] Group 4: Financial Metrics and Profitability - The company reported a 45% year-over-year revenue growth in Brazil, driven by strategic investments that improved user experience and market share [10] - The company noted that while there is pressure on profit margins due to investments, these are expected to yield long-term growth and improved user engagement [11] Group 5: Logistics and Cost Management - The company is satisfied with the results of lowering the free shipping threshold, which led to increased frequency, conversion rates, and market share [12] - Logistics costs in Brazil have decreased by 11%, attributed to improved efficiency and the utilization of idle capacity [12] Group 6: Credit and Financial Services - The company has seen strong growth in deposits, which are not currently being used for loan financing but are enhancing user engagement and participation [14] - The credit card portfolio's non-performing loan (NPL) rate has decreased to a historical low of 4.4%, indicating improved credit quality [15]

Key Takeaways MELI reported Q4 EPS of $11.03, down 12.5% YoY, missing estimates despite 44.6% revenue growth.MELI's commerce and fintech revenues rose 40% and 51%, with GMV up 37% and TPV up 42% YoY.MELI saw ad revenues jump 70% and its credit portfolio surge 90%, as margins contracted and expenses climbed.MercadoLibre (MELI) reported fourth-quarter 2025 earnings of $11.03 per share, which missed the Zacks Consensus Estimate by 6.29% and declined 12.53% year over year. Revenues rose 44.55% on a year-over-ye ...

When investors evaluate MercadoLibre (NASDAQ: MELI), the focus usually falls on growth rates. To this end, revenue is still expanding at an impressive clip. Fintech adoption continues rising. Engagement remains strong across Latin America. But heading into 2026, a more important question is emerging: Has competition permanently changed the economics of MercadoLibre's business? Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indisp ...

Core Insights - Mercado Libre's application of artificial intelligence has significantly contributed to revenue growth and operational efficiency in the fourth quarter, with a reported net revenue increase of 45% year-over-year, driven by its commerce and FinTech services [2][3] Group 1: Revenue Growth and Business Performance - The company experienced a 45% year-over-year growth in net revenues during the fourth quarter, attributed to the acceleration of its commerce business and the rapid expansion of its FinTech services [2] - In the commerce sector, Mercado Libre's advertising business saw a remarkable 67% year-over-year growth, which was linked to the implementation of AI-powered bidding algorithms and automated campaign tools [4] Group 2: AI Integration and Tools - The company has integrated AI tools for both buyers and sellers within its marketplace, enhancing the overall user experience [8] - For buyers, an AI-enhanced search experience was launched in Argentina, personalizing search results based on individual search and transaction history [9] - For sellers, a Seller Assistant was introduced to facilitate onboarding, improve listing quality, create short-form videos from product images, and manage customer service inquiries [10] Group 3: FinTech Innovations - In the FinTech segment, Mercado Libre launched the Mercado Pago AI Assistant, which handled over 9 million customer inquiries in the fourth quarter, with 87% managed without human intervention [12] - The AI Assistant is designed to address various use cases, including general inquiries, transfers, and bill payments, with plans for future enhancements to increase its proactive capabilities [13]

For years, investors viewed MercadoLibre (NASDAQ: MELI) primarily as an e-commerce story. That framing is likely outdated. Today, Mercado Pago is just as important as the marketplace, and arguably more consequential for the company's future. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » So the question heading into the future isn't whether fintech is growing. It's whether that growt ...

MercadoLibre (NasdaqGS:MELI) Q4 2025 Earnings call February 24, 2026 05:00 PM ET Company ParticipantsAriel Szarfsztejn - President of CommerceCraig Maurer - Managing DirectorDannie Eiger - Partner and the Co-Head of Equity ResearchGeoffrey Elliott - Director of ResearchMartín de los Santos - CFONeha Argawala - Associate Director of CIB D&AOsvaldo Giménez - Fintech PresidentRichard Cathcart - Investor Relations OfficerRodrigo Gastim - Head of Retail Equity ResearchConference Call ParticipantsAndrew Ruben - E ...

MercadoLibre (NasdaqGS:MELI) Q4 2025 Earnings call February 24, 2026 05:00 PM ET Company ParticipantsAriel Szarfsztejn - President of CommerceCraig Maurer - Managing DirectorDannie Eiger - Partner and the Co-Head of Equity ResearchGeoffrey Elliott - Director of ResearchMartín de los Santos - CFONeha Argawala - Associate Director of CIB D&AOsvaldo Giménez - Fintech PresidentRichard Cathcart - Investor Relations OfficerRodrigo Gastim - Head of Retail Equity ResearchConference Call ParticipantsAndrew Ruben - E ...

MercadoLibre (NasdaqGS:MELI) Q4 2025 Earnings call February 24, 2026 05:00 PM ET Speaker16Hello everyone, welcome to the MercadoLibre, Inc. Earnings Conference Call for the quarter ended December 31, 2025. Thank you for joining us. I'm Richard Cathcart, MercadoLibre, Inc.'s Investor Relations Officer. Today, we will share our quarterly highlights on video, after which we will begin our live Q&A session with our management team. Before we go on to discuss our results for the 4th quarter of 2025, I remind you ...

INVESTOR PRESENTATION DISCLAIMERS Fourth Quarter 2025 This presentation may contain forward-looking statements including, but not limited to, statements regarding MercadoLibre, Inc.'s expectations, objectives and progress against strategic priorities; initiatives and strategies related to our products and services, including our inability to successfully deliver new products and services; business and market outlook, opportunities, strategies and trends; the macroeconomic environment; customer preferences a ...