MELI — MercadoLibre, Inc.

E-Commerce / Fintech / Payments / Logistics · NASDAQ · Montevideo, Uruguay

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Our View: We Like It

Imagine a company that's Amazon, PayPal, and FedEx combined — but in a region where e-commerce is still in the early innings. That's MercadoLibre. Revenue grew 39%. 80 million people buy on its marketplace. 78 million use its fintech platform. The credit portfolio is growing 83%. And the PEG ratio of 0.93 is right at our buy threshold. The stock is 35% off its highs.

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The Story

Balanced Grower Strong growth + profitability, but expect some volatility

MercadoLibre is the company that figured out how to do e-commerce in a region where it's genuinely hard — Latin America, where 600 million people live but infrastructure, logistics, and financial systems are decades behind the U.S.

They solved the problem by building everything themselves. The marketplace (like Amazon). The payments platform, Mercado Pago (like PayPal). The logistics network, Mercado Envíos (like FedEx). The lending business, Mercado Crédito. The advertising platform. They even run a digital wallet that's become how millions of Latin Americans manage their money — many for the first time.

Each piece of the business reinforces the others. Shoppers come for the marketplace, discover Mercado Pago, and start using it for payments and savings — even outside the marketplace. Fintech users get credit cards that earn cashback on marketplace purchases, driving more sales. The advertising platform monetizes the traffic. The logistics network locks in speed advantages. Amazon has the commerce side in Latin America but not the fintech. Banks have the fintech but not the commerce. MercadoLibre has both.

The numbers reflect this: revenue grew 39% in 2025. Over 80 million unique buyers use the marketplace. 78 million people use Mercado Pago. The credit portfolio grew 83% and is a meaningful profit driver. Latin American e-commerce penetration is still only around 8–12% — compared to 20%+ in the U.S. — which means the growth runway is long.

The stock is 35% off its high because emerging market stocks broadly sold off and because some investors worry about credit risk as the lending business scales. Those are legitimate concerns. But MercadoLibre has navigated currency crises, political instability, and competitive threats for over two decades — and kept growing through all of it.

02	The Numbers

Here's the data for those who want to dig in.

Stock Price

$1,724

Market Cap

~$87B

PEG Ratio

0.93

Revenue Growth

+39%

What the numbers tell us:

Growth is extraordinary — and the PEG confirms it's reasonably priced. Revenue up 39% with a PEG of 0.93 — right at our buy threshold. For a company this size, growing this fast, in a region with this much headroom, the valuation is attractive.

The flywheel is working. 80 million buyers, 78 million fintech users, 83% credit growth, AI-based fraud detection at 87% automation rate. Each business line feeds the others — creating a compounding advantage competitors can't easily replicate.

Emerging market risk is the trade-off. Currency volatility, political instability, and credit risk in a region where economic conditions can shift quickly. The lending business ($12.5 billion portfolio) is a particular area to watch — rapid growth in lending can mean higher defaults during downturns. MercadoLibre's track record suggests they manage these risks well, but it's not risk-free.

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MELI — MercadoLibre, Inc.

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Deep Dive: The company building commerce for all of Latin America

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