Is MELI (MercadoLibre) a screaming buy at these levels, or is it still expensive ? Could it be the next 10x?

Investor summaryNeutral

Debates if MELI's 49% revenue growth and LatAm dominance justify buying after a 40% drop, or if margin compression is a falling knife.

Bull points

Revenue surged 49% YoY in Q1, the fastest growth in four years.
Maintains undeniable ecosystem dominance in Latin America.
A 40% drawdown could present a generational entry point for long-term compounding.

Bear points

Stock is being punished by the market for deliberate margin compression.
Massive capital expenditures in logistics and credit weigh on near-term profitability.
Risk of catching a falling knife if investors lose patience with the profitability reset.

MELI财报季价值 / 回购

Post body

Hi guys I’ve been deep diving into $MELI and I’m torn. With revenue up 49% YoY in Q1 2026(. the fastest growth in four years) the ecosystem’s dominance in LatAm is undeniable. Yet, the market is punishing the stock for the deliberate margin compression as they pour billions into logistics and credit.

At $1,675, is this a generational entry point after the 40% drawdown, or are we catching a falling knife as investors lose patience with the profitability reset? I’m considering a major position, but I need to stress-test if the long-term compounding potential still supports a 10-bagger thesis.

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