MercadoLibre, Inc. (MELI): A Bull Case Theory 

We came across a bullish thesis on MercadoLibre, Inc. on X.com by DG_Invests. In this article, we will summarize the bulls’ thesis on MELI. MercadoLibre, Inc.’s share was trading at $2,071.78 as of November 28th. MELI’s trailing and forward P/E were 50.57 and 30.77 respectively according to Yahoo Finance.

MercadoLibre (MELI) is the dominant e-commerce and fintech powerhouse in Latin America, operating a diversified ecosystem that spans its online marketplace, payments platform (Mercado Pago), logistics network (Mercado Envíos), and lending arm (Mercado Crédito). These businesses are deeply interconnected, creating a self-reinforcing flywheel: sellers on the marketplace use Mercado Pago for seamless payment processing, while Mercado Envíos leverages marketplace data to optimize delivery efficiency, reducing costs and improving speed.

Mercado Crédito extends credit to buyers and sellers based on their transaction history, lowering risk and fueling more commerce. This integration drives a virtuous cycle—more buyers attract more sellers, which expands payment volume and logistics usage, generating richer data to underwrite loans more effectively. The result is a high-quality, compoundable business model that benefits from strong network effects and entrenched customer engagement across Latin America.

MercadoLibre’s ability to reinvest profits into its ecosystem ensures continued growth and strengthens its competitive moat, positioning it as a long-term compounder in the region’s rapidly expanding digital economy. Its marketplace dominance, combined with integrated financial services and logistics capabilities, provides a unique growth platform that consistently enhances user experience while creating new monetization opportunities. The interconnectedness of these segments not only accelerates adoption and retention but also reinforces the resilience and scalability of the business, offering investors exposure to both e-commerce and fintech growth in one of the world’s most dynamic markets.

Previously we covered a bullish thesis on MercadoLibre, Inc. (MELI) by DG_Invests in May 2025, which highlighted the company’s dominant e-commerce and FinTech ecosystem and strong network effects driving long-term growth. The company’s stock price has depreciated approximately by 19.85% since our coverage. The thesis still stands as MELI’s integrated ecosystem and secular growth runway support continued compounding. Daan | InvestInsights shares a similar perspective but emphasizes user adoption and Q1 2025 financial performance.

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Disclosure: None.