MercadoLibre: Scaling Tremendously Ahead Of A Rotation Trade

MercadoLibre is poised for a rebound after a significant stock decline, despite accelerating growth, particularly in Brazil. The company is expected to benefit from secular Latin American growth, with its quarterly GMV expanding at a mid-30s pace. MercadoPago, its fintech arm, is a key driver of TPV and now contributes nearly half of total revenue. Despite aggressive investment, MercadoLibre maintains positive GAAP net income and adjusted EBITDA, supporting a buy rating. The market rally is broadening beyond AI stocks, and bullish optimism is shifting from momentum-driven stocks. The author has a beneficial long position in the shares of MELI.