MercadoLibre: Fade The Rally Before Jumping Back In

Sep. 07, 2024 10:00 AM ETMercadoLibre, Inc. (MELI) StockMELI2 Comments
Juxtaposed Ideas
13.59K Followers
(12min)

Summary

  • MELI's high growth investment thesis is currently in overdrive, as the management delivers robust performance metrics across commerce, fintech, and advertising segments.
  • With eMarketer already expecting increased market share/ advertising opportunities over the next few years, we may see the segment being a top/ bottom line driver ahead.
  • This may be significantly aided by Mercado Pago's outperformance in Argentina and Brazil, as the management seeks to enter Mexico's digital bank market in the near term.
  • These developments are also why MELI's PEG ratio remains cheap, despite the baked in premium observed in its stock prices.
  • Even so, we shall discuss why readers may want to wait for a near-term pull back for an improved margin of safety.

Red arrow pointing down with declining bar graph on red background

lerbank

MELI's High Growth Investment Thesis Is In Overdrive

We previously covered MercadoLibre, Inc. (NASDAQ:MELI) in July 2024, discussing why we had reiterated our Buy rating then, attributed to its double beat FQ1'24 earnings call, growing market share in Latam, and

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