MercadoLibre: Playing Chess, Not Checkers

James FoordInvesting Group LeaderFollow5ShareSaveCommentsSummaryMercadoLibre, Inc. is executing a deliberate margin-sacrificing growth strategy, mirroring Amazon’s early playbook in high-growth Latin American markets.Despite margin pressure, MELI’s revenue grew 45% YoY, with fintech assets up 80% and advertising revenue up 67%, reinforcing robust multi-engine expansion.MELI stock trades at its lowest historical EV/revenue and a forward PEG below 1, making current valuation levels compelling given execution and growth rates.Technical indicators signal a bullish reversal for MELI stock, while risks include credit expansion, regional volatility, and persistent margin pressure from competition.Looking for a portfolio of ideas like this one? Members of The Pragmatic Investor get exclusive access to our subscriber-only portfolios. Learn More » efks/iStock via Getty Images Thesis Summary MercadoLibre, Inc. (MELI) is down over 30% in the past six months, as investors raise concerns over margin pressure. But the way I see it, this is a deliberate company policy and the exactThis article was written byJames Foord27.5K FollowersFollowJames Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

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