Is MELI a good stock to buy? We came across a bullish thesis on MercadoLibre, Inc. on The Analyst’s Journal’s Substack by RA_Capital. In this article, we will summarize the bulls’ thesis on MELI. MercadoLibre, Inc.’s share was trading at $1,610.00 as of June 11th. MELI’s trailing and forward P/E were 41.92 and 30.86 respectively according to Yahoo Finance.
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MercadoLibre, Inc. (MELI) is positioned as the dominant digital commerce and fintech ecosystem in Latin America, combining leading e-commerce, payments, lending, logistics, and advertising platforms that continue to reinforce one another. Despite the stock trading at $1,599.52, approximately 39.5% below its July 2025 all-time high, the company delivered exceptional operating results that support a bullish long-term outlook.
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Revenue increased 44.6% year-over-year to $8.8 billion in the fourth quarter of 2025, while full-year revenue reached $28.89 billion, up 39%, marking an impressive streak of 28 consecutive quarters with growth exceeding 30%. The company’s fintech platform, Mercado Pago, remains a major growth engine, with its credit portfolio nearly doubling year-over-year to $12.5 billion, monthly active users expanding around 30% for ten consecutive quarters, and three million new credit cards issued during the quarter.
Commerce momentum also remains strong, supported by 120 million annual active buyers and 492 million items sold in the quarter, while Brazil and Mexico both delivered 35% GMV growth. MercadoLibre continues to strengthen its competitive advantages through significant investments in logistics, technology, and artificial intelligence, with AI-powered advertising revenue growing 67% year-over-year and AI handling 87% of Mercado Pago customer interactions.
Although the market reacted negatively to earnings due to operating margin compression, management intentionally sacrificed near-term profitability to accelerate market share gains through free shipping, credit expansion, cross-border trade, and first-party commerce initiatives.
With dominant market positions across Brazil, Argentina, and Mexico, a logistics network significantly faster than competitors, and more than $14 billion planned for investment in 2026, MercadoLibre appears well positioned to benefit from Latin America’s ongoing digitalization. The thesis suggests a potential valuation of $2,400 to $2,730 per share, implying approximately 50% to 71% upside from current levels.
Previously, we covered a bullish thesis on MercadoLibre, Inc. (MELI) by Daan | InvestInsights in May 2025, which highlighted the company’s leadership in Latin American e-commerce and fintech, expanding digital adoption, strong user growth, and long-term growth potential. MELI’s stock price has depreciated by approximately 37.71% since our coverage. RA_Capital shares a similar view but emphasizes on accelerating fintech expansion, AI-driven growth, strategic market share investments, and significant upside from current levels.
MercadoLibre, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 102 hedge fund portfolios held MELI at the end of the first quarter which was 113 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.
Disclosure: None.
