NASDAQ:MELI MercadoLibre, Inc.

ISIN: US58733R1023
Consumer DiscretionaryE-CommerceFintechEmerging MarketsExpensive — Valuation Ceiling
NASDAQ · HQ Montevideo, Uruguay · LatAm e-commerce + fintech Analysis Status: On-Going
All figures in USD (MELI reports in USD; operations in ARS/BRL/MXN carry FX translation risk).
$1,881.57
-0.22%
31 Jul 2026 · Signal v6

What changed since 16 Jul 2026

DISCLAIMER: This is a quantitative framework for educational purposes only. It is not financial advice. Always do your own research and consult a licensed financial advisor before making investment decisions.

MercadoLibre, Inc.

MercadoLibre is Latin America's largest e-commerce and digital-payments platform, operating across 18 countries with its two biggest markets in Brazil and Mexico. Its core is a two-sided online marketplace (Mercado Libre) wrapped in an owned logistics network (Mercado Envios), paired with a fast-growing fintech arm (Mercado Pago) that runs payments, a digital wallet, and a consumer/merchant credit book (Mercado Credito). What sets it apart is the flywheel between the two: the marketplace feeds the payments and lending business, while owned fulfilment and a dominant regional brand give it a logistics-and-data edge rivals must out-spend to match. For a reader, think of it as Amazon and a digital bank fused into one company, built for a region where both online shopping and formal finance are still under-penetrated and growing fast.

HorizonSignalComposite ScoreConfidenceKey Driver
Short-term (1–3 mo)HOLD4961%Expensive valuation caps a high-quality grower; momentum capped at the 200-DMA into Q2 earnings
Medium-term (6–12 mo)HOLD5262%Great business, wrong price — clean ~47x vs ~31x warranted; EM macro headwind
Long-term (3–5 yr)HOLD5563%Secular LatAm tailwind intact but the price embeds more growth than the fundamentals support
Next update: 2026-08-06 — Q2 2026 earnings after the close 5 Aug (5 days out, inside the 14-day cap) — the outlook-changing event — plus one trading day. Core-PCE (31 Jul) + Aug-1 tariff deadline land alongside.
Table of Contents
1Five-Pillar Scorecard2Hard Gates & Do-Not-Buy Status3Pillar Detail: Business Quality4Pillar Detail: Valuation Attractiveness5Pillar Detail: Underlying Drivers6Pillar Detail: Economic Alignment7Pillar Detail: Entry/Exit Timing8Economic Event Risk9Multi-Timeframe Technical Analysis10Price Chart (6-Month Daily)11Scenario Summary12Entry / Exit Rules13Position Sizing Context14Calibration Snapshot15Data Sources & Methodology
1

Five-Pillar Scorecard

Five independent scores — each 0–100 with its own confidence. The three fundamental pillars (Quality / Valuation / Timing) set the base BUY/HOLD/SELL via the Decision Matrix; the two context pillars (Underlying Drivers, Economic Alignment) then amplify a BUY to STRONG BUY or a SELL to STRONG SELL when both corroborate.

Business Quality

84
strong — 49% growth, wide moat
conf 78%

Valuation Attractiveness

28
expensive — ~47x vs ~31x warranted
conf 74%

Entry/Exit Timing

53
mixed — capped at the 200-DMA
conf 60%

Underlying Drivers

70
Tailwind (blocked)
conf 70%

Economic Alignment

42
Neutral · Headwind
conf 55%
2

Hard Gates & Do-Not-Buy Status

Binary safety checks — any TRIGGERED gate is a hard cap regardless of the scores above; CAUTION gates are sizing notes.
Financial Distress
Cash ~$5.7bn, interest coverage ~17.5x, current ratio 1.16. Debt is largely fintech funding, not distress leverage. Clear.
⚠️
Valuation Ceiling
Clean ~47x is ≥1.4x the ~31x warranted multiple AND above every relevant sector guardrail (24x/26x/33x) → Expensive. Caps the signal at HOLD and blocks amplification. This is the binding constraint.
Earnings Quality
No non-operating inflation — reported net income is if anything depressed by a ~$0.7bn TTM FX/interest drag. Clean P/E ≈ reported P/E. No AI-markup distortion.
⚠️
Fintech Credit-Book Risk
Mercado Crédito +87% to ~$14.6bn; provisions +106% (≈2/3 of the margin hit); NIMAL 17.8% vs 22.7%; 15-90d NPL 8.0% stable. Same Q1 print as prior — monitor at Q2, not triggered.
⚠️
Earnings Blackout
Q2 2026 prints after the close 5 Aug (5 days out). Avoid initiating into the binary — a sizing/timing note, not a signal cap.
Liquidity / Dilution
~50.7m shares, no meaningful dilution; deep-liquid NASDAQ mega-cap (~$95bn). Clear.
Concentration
Geographically diversified across Brazil, Mexico, Argentina and 15 more markets; no single-country >~55% dependence that fires the gate. Clear.
Net gate state: CAUTION. No triggered gate and no Do-Not-Buy trigger. The Valuation Ceiling and the credit-book/earnings-blackout cautions are what pin a high-quality grower at HOLD — the business is not the problem, the price is.
3

Pillar Detail: Business Quality

A deep dive into the Quality score: business economics, moat, ROIC and the industry benchmark.
Business Quality — Pillar Score
High-quality, wide-moat compounder — 49% revenue growth, 42% GMV, a logistics + payments flywheel; margins temporarily pressured by credit-book investment.
84
conf 78%

MercadoLibre sits firmly in the high-growth lifecycle stage — trailing-twelve-month revenue of ~$31.8bn is up 49% year-on-year, gross merchandise value (GMV) is compounding in the low-40s%, and the fintech arm is scaling faster still. The business is judged on growth quality and unit economics, not on mature-company profitability metrics. No new earnings since the prior report — Q1 2026 (filed 8 May 2026) remains the latest print, so the Quality score is unchanged at 84. Q2 2026 lands after the close on 5 August 2026; consensus is ~$9.74bn revenue and ~$8.67 EPS.

Sub-signalReading (latest print, Q1 2026 TTM)Score
Revenue trajectoryTTM revenue $31.8bn, +49% YoY; GMV +42%, acquiring TPV +39% (FX-neutral +41%)90
Profitability vs historyOperating margin 9.6% TTM (Q1 6.9%, pressured by credit-book investment + logistics); gross margin 43.9%; net margin 6.0%62
Cash generationReported FCF yield double-digit, but float-inflated by Mercado Pago deposits + credit-book funding — a lender-style balance sheet, not clean commerce FCF60
Balance-sheet healthCash ~$5.7bn; interest coverage ~17.5x; current ratio 1.16; debt largely fintech funding, not distress leverage72
Return on equityROE ~26-31% — high for the sector even with the margin drag80
Fintech / credit scaleMercado Crédito book ~$14.6bn, +87% YoY; provisions +106% (≈2/3 of the margin hit); NIMAL 17.8% vs 22.7% prior; 15-90d NPL 8.0% (stable)58

Industry Benchmark — TPV Growth + Take-Rate Stability (EM Payments)

Acquiring TPV +39% YoY (+41% FX-neutral) with a stable-to-rising take rate is the key composite for an emerging-market payments platform: it means volume is scaling without margin erosion. Both legs are strong. Benchmark score: 88/100. The one caveat is the credit book — reported "credit revenue" is lender revenue net of provisions, not clean commerce revenue, so provision growth (+106%) is the metric to watch when Q2 prints.

Pricing power

68

Take-rate stable/rising, but competitive intensity in both commerce and fintech constrains outright pricing.

Network effects

88

Two-sided marketplace + a payments/credit flywheel; more buyers and sellers deepen both liquidity and the data edge.

Switching costs

78

Sellers embedded in Mercado Envios logistics + Mercado Pago rails; consumers hold balances and credit lines. Sticky, though consumer commerce is contestable.

Cost advantage

80

Owned first-party logistics network across LatAm is the durable structural edge rivals must out-spend to replicate.

Intangible assets

66

Dominant regional brand + fintech licences; no patent moat.

Moat score (average) = 76/100 — a wide, logistics-and-payments-anchored moat, capped by contestable consumer commerce.

Competitive Environment (feeds Switching Costs & Cost Advantage)

MercadoLibre is still gaining share overall in LatAm e-commerce and holding its fintech lead, but the field is crowded and the threat level is moderate-and-rising. Its logistics moat (owned fulfilment) is the reason the Cost-Advantage and Switching-Cost sub-scores stay high; a credible share loss to any rival below would compress them.
RivalWhere it attacksShare trajectory
Amazon1P e-commerce in Brazil & Mexico; Prime logisticsGrowing but sub-scale vs MELI's fulfilment density; contained
Shopee (Sea Ltd)Low-price 3P marketplace, aggressive subsidies in BrazilRe-accelerating in Brazil — the most active near-term commerce threat
NubankDigital banking & consumer credit in Brazil/MexicoScaling fast in fintech; the direct Mercado Pago/Credito rival
Local incumbentsMagazine Luiza, Americanas (BR); Coppel (MX)Losing share to MELI; weak

ROIC & Capital Allocation

Returns on capital are high but understated by the fintech balance sheet (the credit book inflates invested capital). Management has a disciplined, reinvestment-led capital-allocation record — no dividend, no buyback at these multiples, cash redeployed into logistics, Mexico build-out and the credit book. Founder-led alignment is a positive. ROIC / capital-allocation sub-score ≈ 74.
4

Pillar Detail: Valuation Attractiveness

Sector-appropriate multiples, FCF yield, reverse-DCF implied growth, embedded optionality, and the analyst-consensus cross-check.
Valuation Attractiveness — Pillar Score
Expensive on the warranted-multiple anchor — clean ~47x vs ~31x warranted (ratio 1.52) and above every sector guardrail. Fair value ~$1,240 vs a ~$1,882 price.
28
conf 74%

Great business, wrong price — that is the whole valuation story, and it is the single reason the signal is HOLD across every horizon. On the warranted-multiple anchor, MercadoLibre is firmly in the Expensive band, and it has become more expensive since the prior report on two counts: the price is up ~2% and the 10-year Treasury has risen to 4.67% (from 4.48%), which lifts the discount rate and lowers every warranted multiple.

The Anchor — Warranted-Multiple Valuation

Discount rate r = 4.67% (10-Y UST, 31 Jul 2026) + 4.5% equity-risk-premium + 0.0% risk add-on (Business Quality 84 ≥ 65) = 9.2%.
Growth g = gnear 18% (secular-growth internet; consensus ~34% 5-yr EPS CAGR haircut ×0.75 and capped at the proven >20%-grower ceiling, flagged) → gterm 3%.
Two-stage DCF → warranted P/E ≈ 31×. Actual clean P/E ≈ 47×. Ratio 1.52 (≥ 1.40 = Expensive). Independently, clean ~47× clears every relevant sector guardrail floor — the Consumer-Discretionary line (24×), the Communication-Services line (26×) and the most-generous Information-Technology line (33×) — so the name is Expensive on the floor alone, not merely on the ratio. A Full/Expensive-band name is never amplified to STRONG BUY, and here it caps the signal at HOLD and blocks the Driver-70 tailwind from doing anything.
MetricValueRead
Clean P/E (TTM, FX-normalised)~47xExpensive vs ~31x warranted
Reported P/E (TTM)49.7xNet income depressed by FX drag, so clean ≈ reported
Forward P/E 2026E / 2027E / 2028E47.8x / 33.4x / 24.1x2026 is a down EPS year; leverage snaps back 2027-28
Forward PEG1.15Fair only if the ~34% growth actually lands
EV/Revenue TTM~3.2xNot demanding for 49% growth — the P/E is the binding lens
Price / Book13.1xRich
Analyst consensus target (FMP)$2,150 median ($1,750-$2,600; 24-analyst mean $2,215)Street sees +14% to median
Grades consensusBuy — 1 Strong Buy / 23 Buy / 9 Hold / 0 Sell (72.7% bullish)Buy-tilted, but two H2 downgrades to Neutral (UBS, Citi)
FMP financial-health ratingB (overall 3/5)P/E & P/B score 1/5 (rich); ROE & DCF score 5/5

Framework fair value ≈ $1,240 (warranted ~31× on ~$40 normalised EPS) sits well below both the ~$1,882 price and the Street's ~$2,150 median. The gap is the embedded-growth premium: at $1,882 the market is pricing ~24-26% five-year EPS growth versus our disciplined 18% haircut. The optionality is real — Mexico build-out, a NIMAL/credit-margin recovery, an advertising sum-of-the-parts, and the 2H26 operating-leverage snap-back into a +40%-ish 2027E EPS — but that is a tilt inside the Expensive band, not a re-rating that clears it. Earnings quality is clean: unlike the mega-cap AI names, reported net income is if anything depressed by a ~$0.7bn TTM below-the-line FX/interest drag (largely Argentine peso), not inflated by mark-to-market gains — so clean P/E ≈ reported P/E and there is no earnings-quality flatter to unwind.

5

Pillar Detail: Underlying Drivers

The dominant external force the stock is tethered to, scored 0–100. A context pillar: it does not change the base signal — it feeds amplification (tailwind ≥65 can lift BUY→STRONG BUY; headwind ≤35 can push SELL→STRONG SELL).
Primary Driver
LatAm digital-commerce + fintech adoption
70
Tailwind — BLOCKED (HOLD + Expensive)

The dominant force under MercadoLibre is the secular digitisation of Latin-American commerce and finance — e-commerce penetration and formal-financial inclusion are both still low and rising, and MELI is the regional platform capturing both. That structural driver is a genuine Tailwind (70/100) and intact. The secondary driver — Argentina/Brazil macro and ARS/BRL FX — is the near-term swing factor, and it has softened this run: the Iran/Hormuz energy shock and the 1 August tariff wall have re-armed EM-currency stress, a mild negative on the "current" reading.

HorizonDriver readingScore
HistoricalLatAm digital-commerce + fintech adoption has been a powerful, durable multi-year tailwind78
CurrentStructural adoption intact, but EM-currency stress (Iran oil shock, Aug-1 tariffs) is a near-term FX headwind on the LatAm consumer65
ForwardPenetration runway + credit-margin recovery + Mexico/ads optionality keep the forward tailwind firm70

Amplification status — BLOCKED

Driver 70 is a Tailwind (65-79 band) that would lift a base BUY to STRONG BUY. It does nothing here for two independent reasons: (1) the base signal is HOLD, and HOLD never amplifies; (2) the Expensive valuation blocks amplification outright. Thesis-invalidation floor: sustained GMV/TPV deceleration below ~20%, or a credit-quality break (NPL / provisions spike) forcing the lending book to shrink.
6

Pillar Detail: Economic Alignment

How the current economic climate sits relative to this stock, read from the latest Macro-Economic report. Classifies the macro pressure (Tailwind / Neutral / Headwind) — the second amplification input — and frames a long entry as Trend-Following or Contrarian with a 0–100 conviction.
Stance · Pressure
Neutral · Headwind
42
conviction

On the 30 Jul macro state, MercadoLibre's two macro anchors both weakened. EM Equities are Underperform (short) / STRONG Underperform (medium) / Neutral (long) — the medium-term rolled from Neutral to Strong-Underperform and the long-term recovery sleeve softened from Outperform to Neutral. MELI's GICS sector, Consumer Discretionary (XLY), is Underperform / Strong-Underperform / Underperform and carries a 0% model-portfolio weight. The regime is Stagflation-lite with a re-armed energy shock (Iran/Hormuz re-escalation, Brent ~$90-92) and the 1 August tariff wall, both of which pressure EM-currency and the LatAm consumer near term. Net: a near-and-medium-term Headwind, a long-term that has faded to Neutral. Because the base signal is HOLD and the valuation is Expensive, this is a scorecard/narrative delta only — it cannot move the signal. FLIP from Neutral/Mixed (conviction 52) to Neutral/Headwind (conviction 42).

Source: asset-class-map (EM Equities) + sector-map (XLY) · Macro report 2026-07-30

7

Pillar Detail: Entry/Exit Timing

The risk-reward framework, relative strength vs SPY and the sector ETF, the macro overlay, news-derived sentiment, and the catalyst cluster.
Entry/Exit Timing — Pillar Score
Mixed-and-capped — momentum recovered to the underside of the 200-DMA (~$1,894) but into a weekly downtrend and a binary Q2 print; unattractive risk-reward right at resistance.
53
conf 60%

Short-term momentum has recovered the stock back to the underside of its 200-day moving average (~$1,894) — a textbook overhead-resistance test, not a clean breakout. The daily chart is constructive (RSI 66, reclaimed the 50-DMA at ~$1,721, above the 20-DMA) but is pinned right at the 200-DMA into a still-intact weekly downtrend (price below the weekly 50-DMA ~$1,955). The intraday tape reads strongly bullish, but on thin volume, so the honest confluence is mixed-and-capped: bullish drift into a wall, with a binary Q2 earnings print five days out.

LayerReadingScore
Multi-timeframe trendMonthly uptrend; weekly downtrend; daily recovering into the 200-DMA; hourly/15-min strong-up on thin volume55
Risk-reward at ~$1,882Upside to base ~$1,950 (+3.6%) vs downside to $1,760 support (-6.5%) — unattractive R:R right at resistance48
Relative strengthLaggard over 3-6m; improved +26% off the $1,495 low; vs EM improving but into a weak-EM tape52
Macro overlay (weight 0.15)EM Equities + XLY both Underperform near/medium term — a live headwind on the timing overlay35
SentimentGrades Buy-tilted (72.7% bullish) but no fresh upgrades in 30d; Citi Neutral maintained 15 Jul50
CatalystQ2 2026 earnings after the close 5 Aug — a high-impact binary; core-PCE + Aug-1 tariffs alongside66

Support: $1,760 / $1,593 / $1,546 / $1,495 (52-wk low). Resistance: $1,890 / $1,894 (200-DMA) / $1,905 / $2,000. Range position ~37% of the 52-week band. Entering directly ahead of the Q2 print adds event risk on top of an already-capped Expensive name.

8

Economic Event Risk

High-impact macro releases in the next 14 days that could swing this stock, plus the last 7 days of surprises.

Upcoming events (next 30 days)

DateEventImpactForecastPreviousRelevant?Why
31 Jul 2026US Core PCE (Jun)High0.2% m/m0.2%YesFed's preferred gauge; a hot read hardens the tight-policy regime that pressures EM/duration
01 Aug 2026Aug-1 tariff deadlineHighYesWhether the tariff wall actually lands — a direct EM-risk-appetite and FX event
05 Aug 2026MELI Q2 2026 earnings (a/c)Critical~$9.74bn rev / ~$8.67 EPSQ1 $8.85bn / $8.23YesThe company-specific binary — GMV, fintech TPV, credit provisions, margin and guidance
01 Aug 2026US Jobs (Jul)High~110kYesGrowth read into the stagflation-lite debate; risk-appetite input for EM

Recent surprises (last 7 days)

DateEventActualForecastSurpriseImpact
29 Jul 2026FOMC decisionHold 3.75%HoldIn lineNeutral — no cut; tight policy persists, a mild EM headwind
29 Jul 2026Iran/Hormuz re-escalationMissiles + strikesNegativeRisk-off; Brent +~8% to ~$90-92; EM-currency stress re-armed

The next two weeks are unusually event-dense for MELI: core-PCE and the tariff deadline set the EM-risk backdrop, then the Q2 print on 5 Aug is the swing factor. The report re-runs the day after earnings.

9

Multi-Timeframe Technical Analysis

Trend, RSI and breakout status across monthly / weekly / daily / hourly / 15-minute, with a confluence verdict.
TimeframeTrendDirectionRSIMACDKey S/RBreakoutVol
MonthlyUptrendUp48hist -83 (fading)S 1,063 / R 2,162res-breakout0.79x
WeeklyDowntrendDown54hist +39 (improving)50-DMA 1,955 overhead0.69x
DailyRecoveringUp66hist ~0 (flat)200-DMA 1,894 overheadres-test1.06x
HourlyStrong upUp54hist -0.6R 1,902res-breakoutthin
15-minStrong upUp53hist +0.3R 1,890res-breakoutthin
Confluence: Mixed / bullish-but-capped · MTF Score 53

The raw tool prints 'strongly bullish' because the intraday frames dominate the count, but those are thin-volume. The load-bearing read is the daily pinned at the 200-DMA (~$1,894) inside a weekly downtrend — a resistance test, not a confirmed breakout. A daily close decisively above ~$1,905 on volume would flip the medium-frame; failure here points back toward $1,760 then $1,593.

10

Price Chart (6-Month Daily)

A 6-month daily close line with SMA50 and key support/resistance — the visual companion to the MTF table.

6-month daily: recovery off the $1,495 low stalling right at the 200-DMA (~$1,894), the key wall. SMA50 (~$1,721) reclaimed and rising. Illustrative daily closes.

11

Scenario Summary

Bull / Base / Bear 12-month price paths with triggers and probability weights.

Bull $2,450 (28%)

Q2 (5 Aug) beats — GMV/TPV re-accelerate, NIMAL/credit-margin recovers, Mexico and advertising inflect, guidance raised — while Iran de-escalates and EM risk appetite relieves. The multiple re-rates toward the Street's $2,150-$2,600. This is the analyst-consensus path, but it needs both the print AND the macro to cooperate.

Base $1,950 (50%)

Q2 lands roughly in line (~$9.7bn revenue, ~$8.67 EPS) with provisions still heavy. The stock ranges $1,760-$2,050, unable to clear the 200-DMA decisively because the Expensive multiple caps upside and the EM macro stays a headwind. Most probable — the business compounds, the price does not re-rate.

Bear $1,520 (22%)

The Aug-1 tariff wall lands and the Iran/oil shock deepens, hitting EM risk appetite and the ARS/BRL; a soft Q2 (GMV deceleration or a credit-quality wobble — provisions/NPL up) compounds it. The stock retests the $1,495 52-week low. Weighted slightly higher this run given the live macro deterioration.

Probability-weighted fair value ≈ $1,933 (0.28·2,450 + 0.50·1,950 + 0.22·1,520). That the weighted number sits ~3% above the framework's ~$1,240 anchor fair value reflects the Street-driven bull tail — but it is still essentially flat to the ~$1,882 price, which is exactly why the signal is HOLD: no edge either way at this level.

12

Entry / Exit Rules

Three independent entry paths (Fundamental · Technical · Catalyst) and three exit triggers (Stop-Loss · Thesis · Profit-Target). Any one entry path is a valid entry — the more that agree, the larger the position the conviction ladder suggests. Exits are graded by severity, not count.

How to read this — the Conviction Ladder

The three entry groups are alternative paths to a buy, not a checklist. A group counts only when all its sub-conditions hold. How many groups are satisfied sets the suggested size — it does not gate whether you may enter: 1 group = Half-Size (a valid starter/scale-in), 2 = Full-Size, 3 = Over-Size (highest conviction); 0 = Wait (no path open yet). A strong overall signal can still read Wait here when the stock is well above its entry zones — that flags "good business, no entry edge right now," not a contradiction. Exits are graded by severity of what is live, not by a count: a hard stop is an Exit on its own.
Entry conviction: Wait0 of 3 groups met — no entry path open

Fundamental — not MET

Price is far above fair value and an earnings blackout is open — no fundamental entry edge.
⛔ Price ~$1,882 << framework fair value ~$1,240 (Expensive)
⛔ No earnings within 7 days — Q2 prints 5 Aug (5 days out)
✅ Underlying-Driver score ≥ 50 (70)

Technical — not MET

At the 200-DMA into a weekly downtrend; no confirmed volume breakout.
⛔ Daily close > $1,905 (above the 200-DMA) on >1.5x volume
⛔ OR a tested bounce off $1,760/$1,593 support with a higher low
⛔ RSI 35-65 (daily 66 — slightly hot)

Catalyst — not MET

Q2 earnings is pending, not a confirmed post-event breakout.
· Post-Q2 move >+5% with guidance raised (event is 5 Aug — not yet occurred)

Forecast: No entry path is open. The cleanest setups are a decisive post-Q2 (5 Aug) beat-and-raise that clears ~$1,905 on volume, OR — more attractive on price — a pullback into $1,760/$1,593 support. Even then, the Expensive valuation caps any resulting position at a starter until the multiple compresses toward the ~$31x warranted line.

Exit action: Holdno exit trigger is live — hold the position

Stop-Loss — not LIVE

⛔ Two daily closes below $1,480 (below the $1,495 52-wk low)

Thesis Invalidation — not LIVE

⛔ Sustained GMV/TPV deceleration below ~20%
⛔ OR a credit-quality break (provisions/NPL spike) forcing the lending book to shrink

Profit-Target — not LIVE

⛔ Price into $2,400+ (bull) with RSI > 70

Forecast: No exit trigger is live (there is no position to exit — the stance is Hold/Wait). The stop at $1,480 sits ~21% below the price.

Imagine you act at the current price of $1,881.57 · as of 31 Jul 2026

What if you bought now?

You would be paying ~47x clean earnings for a business worth ~31x on a disciplined anchor — buying quality at a rich price, into a binary Q2 print and a weakening EM macro. Risking ~21% to the stop for ~3-4% base upside. No edge.

What if you sold now?

If you already hold, there is no exit trigger live — the business is compounding and the thesis is intact. This is a HOLD, not a SELL: you are simply not adding here.
13

Position Sizing Context

Illustrative portfolio math (not advice) translating conviction into an allocation given risk-per-share and volatility.

Position sizing not computed — no portfolio allocation or role was specified for this refresh. As a general note, an Expensive-band HOLD with a live earnings blackout is a name to hold if owned and to wait on if not; any new exposure would be a starter only, and better initiated on a pullback to support than at the 200-DMA into the print.

14

Calibration Snapshot

Machine-readable snapshot of every score, level and signal, saved alongside the HTML so the next run can compute deltas.
{
  "ticker": "MELI",
  "exchange": "NASDAQ",
  "exchange_ticker": "NASDAQ:MELI",
  "isin": "US58733R1023",
  "api_ticker": "MELI",
  "finder_ticker": "MELI",
  "finder_exchange": "\ud83c\uddfa\ud83c\uddf8 NASDAQ",
  "section": "Emerging-Market Equities",
  "company": "MercadoLibre, Inc.",
  "date": "2026-07-31",
  "time": "1200",
  "version": "v6",
  "currency": "USD",
  "analysis_status": "on-going",
  "user_context": {
    "horizon": "all_horizons",
    "allocation_pct": null,
    "portfolio_role": null
  },
  "user_horizon": null,
  "user_allocation_pct": null,
  "portfolio_role": null,
  "price_at_rating": 1881.57,
  "price_at_rating_currency": "USD",
  "signal_short": "HOLD",
  "signal_medium": "HOLD",
  "signal_long": "HOLD",
  "primary_signal": null,
  "quality_score": 84,
  "lifecycle_stage": "high-growth",
  "quality_detail": {
    "revenue_growth_yoy_pct": 49.0,
    "revenue_ttm_usd_bn": 31.8,
    "gmv_growth_yoy_pct": 42,
    "acquiring_tpv_growth_yoy_pct": 39,
    "op_margin_pct_ttm": 9.6,
    "op_margin_pct_q1": 6.9,
    "net_margin_ttm_pct": 6.0,
    "gross_margin_ttm_pct": 43.9,
    "roe_pct": 29.0,
    "moat_score": 76,
    "industry_benchmark_name": "TPV growth + take-rate stability",
    "industry_benchmark_score": 88,
    "credit_book_usd_bn": 14.6,
    "credit_book_growth_yoy_pct": 87,
    "provisions_growth_yoy_pct": 106,
    "nimal_pct": 17.8,
    "nimal_prior_pct": 22.7,
    "npl_15_90d_pct": 8.0,
    "note": "No new earnings vs prior report \u2014 Q1 2026 (filed 2026-05-08) remains the latest print; Quality unchanged at 84. Q2 2026 after close 2026-08-05 (consensus ~$9.74bn rev / ~$8.67 EPS).",
    "credit_caveat": "gross credit revenue is lender revenue net of provisions, NOT clean commerce revenue"
  },
  "valuation_score": 28,
  "val_band": "expensive",
  "warranted_multiple": 31,
  "actual_multiple": 47,
  "warranted_ratio": 1.52,
  "val_multiple_basis": "clean P/E",
  "discount_rate_r": 9.2,
  "risk_free_10y": 4.67,
  "g_near": 18,
  "g_term": 3,
  "valuation_detail": {
    "pe_ttm": 49.6,
    "clean_pe": 47.0,
    "forward_pe_2026": 47.8,
    "forward_pe_2027": 33.4,
    "forward_pe_2028": 24.1,
    "forward_peg": 1.15,
    "ev_revenue_ttm": 3.2,
    "price_to_sales_ttm": 2.99,
    "price_to_book_ttm": 13.08,
    "ev_ebitda_ttm": 30.7,
    "fcf_yield_pct_reported": 11.2,
    "fcf_caveat": "float-inflated by Mercado Pago deposits + credit-book funding; not the anchor",
    "historical_valuation_decile": 4,
    "analyst_consensus_target": 2166.67,
    "analyst_target_median": 2150,
    "analyst_target_high": 2600,
    "analyst_target_low": 1750,
    "analyst_target_upside_pct": 14.3,
    "analyst_grades_consensus": "Buy",
    "analyst_bullish_pct": 72.7,
    "analyst_coverage_count": 24,
    "analyst_coverage_last_month": 0,
    "fmp_rating": "B",
    "fmp_overall_score": 3,
    "guardrail_note": "clean ~47x is \u22651.4x its ~31x warranted multiple AND above every relevant guardrail floor (Consumer-Discretionary 24x, Comm-Services 26x, most-generous Info-Tech 33x) \u2192 Expensive on the floor alone, independent of the ratio.",
    "warranted_note": "r=9.2% (10Y 4.67% + ERP 4.5% + 0.0 add-on, BQ\u226565); two-stage DCF g_near 18% (secular-growth internet, ~34% cons \u00d70.75 haircut, capped/flagged) / g_term 3% \u2192 warranted \u2248 31x. 10Y rose 4.48\u21924.67 vs prior, so warranted fell 32\u219231.",
    "embedded_optionality": "Mexico build-out, NIMAL/credit-margin recovery, advertising SOTP, 2H26 operating-leverage snap-back into 2027E EPS +40%ish \u2014 +tilt inside the band, not a re-rate that clears Expensive",
    "implied_growth_read": "At $1,882 the market embeds \u224824-26% 5yr EPS growth vs our disciplined 18% haircut \u2014 price embeds more growth than the fundamentals support."
  },
  "timing_score": 53,
  "timing_detail": {
    "mtf_trend_score": 55,
    "mtf_confluence": "mixed / bullish-but-capped",
    "mtf_note": "monthly uptrend (RSI 48, MACD hist deeply negative), weekly downtrend (below 50-DMA 1955, MACD hist improving), daily recovering (RSI 66.3, reclaimed 50-DMA 1721, pinned UNDER 200-DMA 1894), hourly/15min strong-up on thin volume. Honest confluence mixed-and-capped: resistance test at the 200-DMA, not a breakout. ~37% of 52-wk range.",
    "rsi_daily": 66.31,
    "macd_hist_daily": -0.1,
    "risk_reward_score": 48,
    "relative_strength_vs_spy": "laggard 3-6m, improved +26% off 1495 low",
    "relative_strength_vs_em": "improving into a weak-EM tape",
    "range_position_52w_pct": 37,
    "dynamic_macro_weight": 0.15,
    "macro_score": 35,
    "sentiment_score": 50,
    "catalyst_score": 66,
    "support": [
      1760,
      1593,
      1546,
      1495
    ],
    "resistance": [
      1890,
      1894,
      1905,
      2000
    ],
    "note": "Price +2.1% since prior (1843\u21921882); recovery stalling at the 200-DMA (1894) into a weekly downtrend and a binary Q2 print 5 Aug."
  },
  "driver_score": 70,
  "driver_label": "Tailwind",
  "driver_detail": {
    "primary_driver": "LatAm consumer + digital-commerce/fintech adoption",
    "secondary_driver": "Argentina/Brazil macro + ARS/BRL FX",
    "historical": 78,
    "current": 65,
    "forward": 70,
    "amplification_eligible": "driver Tailwind (65-79); would amplify a base BUY to STRONG BUY but amplification is BLOCKED by the Expensive valuation (~47x vs ~31x warranted, above every guardrail) AND the base signal is HOLD (HOLD never amplifies) \u2192 signal capped at HOLD across horizons. Current sub-score trimmed 68\u219265 on Iran/tariff EM-currency stress.",
    "thesis_invalidation_floor": "sustained GMV/TPV deceleration below ~20% OR a credit-quality break (NPL/provisions spike) forcing the lending book to shrink"
  },
  "economic_alignment_stance": "Neutral",
  "economic_alignment_conviction": 42,
  "economic_alignment_pressure": "Headwind",
  "economic_alignment_source": "asset-class-map (EM Equities) + sector-map (XLY)",
  "macro_report_date": "2026-07-30",
  "economic_alignment_detail": "EM Equities U/SU/N per 2026-07-30 macro state (Short Underperform, Medium STRONG Underperform, Long Neutral) \u2014 DETERIORATED from U/N/O on 2026-07-14: medium rolled N\u2192SU and the long recovery sleeve softened O\u2192N. MELI's GICS sector Consumer Discretionary (XLY) U/SU/U and macro-penalised (0% portfolio weight). Regime: Stagflation-lite, energy shock re-armed (Iran/Hormuz re-escalation, Brent ~$90-92) + Aug-1 tariff wall \u2192 EM-currency stress. Net stance Neutral/Headwind: near-and-medium-term Headwind (EM+XLY U/SU), long-term faded to Neutral. Scorecard/narrative delta only \u2014 it CANNOT move the signal (base HOLD + Expensive blocks amplification). FLIP from Neutral/Mixed (conviction 52) to Neutral/Headwind (conviction 42) as EM medium/long rolled over.",
  "economic_alignment_stance_prior": "Neutral",
  "economic_alignment_pressure_prior": "Mixed",
  "nonop_pct_of_net_income": -7.7,
  "earnings_quality_note": "Reported net income is if anything DEPRESSED, not inflated \u2014 the below-operating-income line is a net drag (FX/interest/other \u2248 \u2212$0.7bn TTM), largely Argentine peso. No AI-markup / mark-to-market inflation. clean P/E \u2248 reported P/E \u2248 47-49x. The credit book is scored net of provisions (lender caveat), not as clean commerce revenue.",
  "clean_pe": 47.0,
  "clean_peg": 1.15,
  "competitive_share_trajectory": "gaining",
  "competitive_threat_level": "moderate",
  "moat_score": 76,
  "overall_confidence": 62,
  "confidence_note": "Moderate. Signal HOLD across all horizons, unchanged from prior. Valuation is Expensive on the warranted-multiple anchor (clean ~47x vs ~31x warranted = 1.52x, above every sector guardrail), which caps the composite at HOLD and blocks the Driver-70 Tailwind. Quality (84) unchanged \u2014 no new earnings (Q1 2026 still latest; Q2 after close 5 Aug). Real deltas this run: price +2.1% (1843\u21921882, more expensive), 10-Y up 4.48\u21924.67 (warranted 32\u219231, ratio 1.44\u21921.52), Economic Alignment deteriorated to Headwind (EM U/N/O\u2192U/SU/N, XLY worse; conviction 52\u219242), timing mixed-and-capped at the 200-DMA. Framework HOLD (fair value \u2248$1,240 on the anchor) diverges sharply from Street Buy (median $2,150, +14%) \u2014 great business, wrong price.",
  "fair_value_est": 1240,
  "stop_loss": 1480,
  "target_price": 2150,
  "support_1": 1760,
  "support_2": 1593,
  "support_3": 1495,
  "resistance_1": 1894,
  "resistance_2": 1905,
  "resistance_3": 2000,
  "scenarios": {
    "bull": {
      "prob": 28,
      "range": "2350-2600",
      "target": 2450
    },
    "base": {
      "prob": 50,
      "range": "1760-2050",
      "target": 1950
    },
    "bear": {
      "prob": 22,
      "range": "1480-1560",
      "target": 1520
    }
  },
  "scenario_bull_target": 2450,
  "scenario_base_target": 1950,
  "scenario_bear_target": 1520,
  "hard_gate_state": "caution",
  "gates_triggered": [],
  "gates_caution": [
    "Valuation Ceiling: clean ~47x is \u22651.4x its ~31x warranted multiple and above every sector guardrail (24x/26x/33x) \u2192 caps the signal at HOLD and blocks amplification.",
    "Fintech credit-book: Mercado Cr\u00e9dito +87% to $14.6B; provisions +106% (\u22482/3 of the margin hit); NIMAL 17.8% vs 22.7%; NPL 8.0% stable. Same Q1 2026 print as prior \u2014 monitor at Q2, not triggered.",
    "Earnings blackout: Q2 2026 after close 5 Aug (5 days out) \u2014 avoid initiating into the binary."
  ],
  "do_not_buy_triggers": [],
  "entry_criteria_total": 3,
  "entry_criteria_met": 0,
  "entry_groups_met": 0,
  "entry_conviction": "Wait",
  "short_entry_confirmed": false,
  "exit_criteria_total": 3,
  "exit_criteria_met": 0,
  "exit_groups_live": 0,
  "exit_action": "Hold",
  "analyst_consensus_target": 2166.67,
  "analyst_target_high": 2600,
  "analyst_target_low": 1750,
  "analyst_target_upside_pct": 14.3,
  "analyst_grades_consensus": "Buy",
  "analyst_bullish_pct": 72.7,
  "analyst_coverage_count": 24,
  "recent_upgrades_30d": 0,
  "recent_downgrades_30d": 0,
  "recent_grade_action": "Citigroup maintained Neutral 2026-07-15; no upgrades in 30d. H2-2026 saw UBS (29 Apr) and Citi (13 May) downgrade Buy\u2192Neutral.",
  "fcf_yield": 11.2,
  "implied_growth_rate": null,
  "industry_benchmark_name": "TPV growth + take-rate stability",
  "industry_benchmark_value": "Acquiring TPV +39% (FXN +41%) / take rate stable",
  "industry_benchmark_score": 88,
  "next_catalyst": "MELI Q2 2026 earnings after close 2026-08-05 (web-confirmed via press release/StockTitan; consensus ~$9.74bn rev / ~$8.67 EPS). Core-PCE (31 Jul) + Aug-1 tariff deadline land alongside.",
  "next_update_date": "2026-08-06",
  "next_check_date": "2026-08-06",
  "next_update_basis": "Q2 2026 earnings after close 5 Aug (5 days out, inside the 14-day cap) \u2014 the outlook-changing event \u2014 plus one trading day \u2192 6 Aug. Earnings <14d so the +1-day rule applies rather than +14d.",
  "scenario_base_range": "1760-2050",
  "prior_report": {
    "date": "2026-07-16",
    "price": 1843.19,
    "signal_short": "HOLD",
    "signal_medium": "HOLD",
    "signal_long": "HOLD",
    "quality": 84,
    "valuation": 30,
    "timing": 51,
    "driver": 71,
    "econ_stance": "Neutral",
    "econ_pressure": "Mixed"
  }
}

The framework's HOLD diverges sharply from the Street's Buy (median $2,150, +14%). Both can be right: MercadoLibre is a genuinely high-quality, wide-moat compounder (Quality 84) whose price simply embeds more growth than a disciplined anchor supports (Valuation 28). The disagreement is about price, not business.

15

Data Sources & Methodology

Audit trail of every data source: fully available (✓), fallback (⚠), or failed (✗), plus provenance-based confidence haircuts.
Data Source Status
get_stock_snapshot / get_yahoo_quote price $1,881.57 (31 Jul 2026 print); prev close $1,885.73; MCP is the price source of truth
get_income_statement (6q) Q1 2026 (filed 8 May) latest; TTM rev $31.8bn, net $1.92bn, EPS $37.88; below-op FX drag ~$0.7bn TTM
get_financial_ratios P/E 49.6x, P/B 13.1x, ROE ~26-31%, EV/Rev 3.2x, interest cov 17.5x
get_analyst_estimates 2026E EPS ~$39.3 (a down year) → 2027E ~$56 → 2028E ~$78; ~34% 5-yr consensus CAGR
get_price_target_consensus / summary median $2,150 ($1,750-$2,600); Yahoo 24-analyst mean $2,215
get_grades_consensus / get_stock_grades Buy — 1 SB / 23 B / 9 H / 0 S (72.7% bullish); Citi Neutral maint. 15 Jul; no upgrades 30d
get_ratings_snapshot FMP B (overall 3/5); P/E & P/B 1/5, ROE & DCF 5/5
get_multi_timeframe_analysis monthly up / weekly down / daily recovering at 200-DMA 1,894 / intraday strong-up thin
Macro state 2026-07-30 EM Equities U/SU/N; XLY U/SU/U; 10-Y read 4.67%; Stagflation-lite + Iran/tariff shock
Web — Q2 date + 10-Y Q2 2026 earnings confirmed a/c 5 Aug (StockTitan/press release); 10-Y 4.67% 31 Jul (TradingEconomics)
Impact on scores: Full data coverage; no material gaps. The one judgement call is the ~$40 normalised EPS behind the ~$31x warranted fair value (2026 is a cyclically low EPS year), which we hold disciplined rather than crediting the full ~34% consensus growth. Confidence moderate (~62%).
DISCLAIMER: This is a quantitative framework for educational purposes only. It is not financial advice. Always do your own research and consult a licensed financial advisor before making investment decisions.