--- title: "MercadoLibre, Inc. (MELI): A Bull Case Theory" description: "MercadoLibre, Inc. (MELI) is highlighted in a bullish thesis by Sergey on Compounding Your Wealth’s Substack. The company, a leader in Latin America's e-commerce and fintech, reported a 37% revenue gr" type: "news" locale: "en" url: "https://longbridge.com/en/news/251347095.md" published_at: "2025-08-03T19:17:30.000Z" --- # MercadoLibre, Inc. (MELI): A Bull Case Theory > MercadoLibre, Inc. (MELI) is highlighted in a bullish thesis by Sergey on Compounding Your Wealth’s Substack. The company, a leader in Latin America's e-commerce and fintech, reported a 37% revenue growth to $5.9 billion in Q1 2025. With a strong ecosystem, MELI has 66.6 million marketplace buyers and 64 million fintech users. Its dual-segment structure shows robust growth, particularly in fintech. Despite macro risks, MELI's operating margins are expanding, and its balance sheet is solid. The stock appears undervalued with a forward EV/Sales of 4.3, suggesting long-term potential. We came across a bullish thesis on MercadoLibre, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on MELI. MercadoLibre, Inc.’s share was trading at $2,373.89 as of July 31st. MELI’s trailing and forward P/E were 58.40 and 45.87, respectively according to Yahoo Finance. A customer using their phone to access an online commerce platform. MercadoLibre (MELI) stands as Latin America’s dominant e-commerce and fintech platform, delivering 37% year-over-year revenue growth to $5.9 billion in Q1 2025, with $494 million in net income. Its deeply integrated ecosystem—spanning e-commerce, digital payments, logistics, and credit—creates powerful network effects across 18 countries. With 66.6 million unique marketplace buyers and 64 million monthly fintech users, MELI processes $58 billion in TPV and shipped over 1.2 billion items in 2024, underscoring its scale advantage. Its dual-segment structure—Commerce (56% of revenue) and Fintech (44%)—continues to deliver strong growth, with the Fintech segment outpacing overall revenue. The Commerce segment saw 32% YoY growth, while GMV rose 17% YoY and the take rate improved to 25%, signaling rising monetization. Meanwhile, Fintech revenue grew 43% YoY, supported by robust user growth and stable take rates. MELI’s proprietary logistics network and MELI Air reinforce its moat, alongside strong brand equity—ranked 50th globally with a $49.8B brand value. Its credit portfolio grew 75% YoY to $7.8 billion, with stable NPL trends, and selective tightening toward higher-quality borrowers. Argentina’s resurgence, now contributing 23% of revenue with 125% YoY growth, affirms MELI’s strategic pivot toward the region. Despite macro risks, MELI’s operating margins expanded and its balance sheet remains solid, with $9.6B in cash exceeding total debt. Stock-based compensation is just 2% of revenue, and dilution is minimal. Trading at a Forward EV/Sales of 4.3 and a PEG ratio of approximately 1, MELI appears undervalued relative to its 30%+ growth. The synergy between fintech and commerce, coupled with scale, brand, and network advantages, positions MELI as a high-conviction long-term compounder. Previously, we covered a **bullish thesis** on MercadoLibre, Inc. (MELI) by Daan | InvestInsights in May 2025, which highlighted its strong e-commerce and fintech growth in Latin America. The stock has depreciated by ~8% since our coverage, as the valuation has compressed. The thesis still stands. Sergey shares a similar view but emphasizes its segment margins and valuation-driven upside. MercadoLibre, Inc. is not on our list of the **30 Most Popular Stocks Among Hedge Funds**. As per our database, 108 hedge fund portfolios held MELI at the end of the first quarter which was 96 in the previous quarter. While we acknowledge the risk and potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MELI and that has 10,000% upside potential, check out our report about this **cheapest AI stock****.** **READ NEXT:** **8 Best Wide Moat Stocks to Buy Now** **and** **30 Most Important AI Stocks According to BlackRock****.** **Disclosure: None.** Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! AI is eating the world—and the machines behind it are ravenous. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. 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He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance. **Click to continue reading…** ### Related Stocks - [MELI.US - Mercadolibre](https://longbridge.com/en/quote/MELI.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 奧本海默公司在 MercadoLibre, Inc. $MELI 持有 633 萬美元的頭寸 | Oppenheimer & Co. Inc. 在第三季度將其在 MercadoLibre, Inc. (NASDAQ:MELI) 的持股增加了 79.9%，目前持有 2,710 股，價值 633 萬美元。其他機構投資者也增加了他們的持倉。內 | [Link](https://longbridge.com/en/news/275595830.md) | | MercadoLibre, Inc. $MELI 股票被 iA Global Asset Management Inc. 出售 | iA Global Asset Management Inc. 在第三季度減少了對 MercadoLibre, Inc. (NASDAQ:MELI) 的持股比例，下降了 10.8%，目前持有 5,870 股，價值 1,370 萬美元。其他機 | [Link](https://longbridge.com/en/news/273516281.md) | | Generali Powszechne Towarzystwo Emerytalne 在 Mercadolibre, Inc. $MELI 中建立了價值 2353 萬美元的頭寸 | Generali Powszechne Towarzystwo Emerytalne 在 MercadoLibre, Inc.（納斯達克代碼：MELI）中獲得了一個新頭寸，購買了 10,070 股，價值約為 2353 萬美元，使其成為其投資 | [Link](https://longbridge.com/en/news/272815388.md) | | 分析師對 MercadoLibre（MELI）的整體情緒保持積極，因為人工智能的有利因素抵消了資本支出的上升 | 分析師對 MercadoLibre, Inc.（NASDAQ:MELI）持樂觀態度，截至 2026 年 1 月 12 日，超過 90% 的分析師表達了看漲情緒。共識目標價設定為 2800 美元，意味着潛在上漲幅度為 28.50%。這一積極展 | [Link](https://longbridge.com/en/news/272910691.md) | | 投資者對 Mercadolibre 的真實感受究竟如何？ | MercadoLibre Inc 的空頭頭寸增加了 13.67%，短期賣出 796,000 股，佔可用股份的 1.58%。交易者平均需要 1.48 天來平倉這些頭寸。空頭頭寸的增加表明投資者的看跌情緒。與同行相比，MercadoLibre | [Link](https://longbridge.com/en/news/272305343.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.