MercadoLibre Q2: That's Why The Company Is Sacrificing Its Margins

Multiplo Invest 3.37K Followers Follow Summary MercadoLibre's revenue grew 50% YoY, driven by strong Commerce and Mercado Pago performance. Margins declined as MELI increased strategic investments to accelerate growth and customer acquisition. Customer retention improved through deeper integration between the Marketplace and Mercado Pago ecosystem. Long-term competitive advantages should more than offset the current margin pressure and support future profitability. ugde/iStock via Getty Images Investment Thesis I'm keeping a buy rating on MercadoLibre ( MELI ). This is the 7th article in my MELI coverage , started two years ago. This article feels like déjà vu to me, as my last This article was written by Multiplo Invest 3.37K Followers Follow More than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.