Do You Believe Mercadolibre (MELI) has a Long Runway for Future Growth?

2 weeks ago 20

Soumya Eswaran

Thu, April 16, 2026 astatine 11:03 AM CDT 4 min read

Lakehouse Capital, a Sydney-based concern manager, published its “Lakehouse Global Growth Fund” capitalist missive for February 2026. A transcript of the missive tin beryllium downloaded here. February proved to beryllium a pugnacious period for the Fund, chiefly due to the fact that of the ongoing “AI disruption” narrative. During this period, the Fund's nett worth declined by 14.6% aft fees and expenses, whereas its benchmark, the MSCI All Country World Index Net Total Returns (AUD), fell by lone 0.4%. The Fund’s quality-growth concern benignant is facing pressure, particularly successful endeavor software, owed to concerns implicit AI perchance replacing accepted software. However, the Fund believes that bundle companies with mission-critical endeavor platforms tin leverage their strengths to thrive successful an AI-driven world. Consequently, the Fund accrued its holdings successful companies that are much resilient than the marketplace perceives. Despite the alteration successful marketplace worth of the portfolio, the Fund believes that the cardinal maturation of the holdings remains healthy. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Lakehouse Global Growth Fund highlighted stocks similar MercadoLibre, Inc. (NASDAQ:MELI). MercadoLibre, Inc. (NASDAQ:MELI) is simply a starring online commerce level successful Latin America that operates Mercado Libre Marketplace and Mercado Pago FinTech platforms. On April 15, 2026, MercadoLibre, Inc. (NASDAQ:MELI) closed astatine $1,872.12 per share. One-month instrumentality of MercadoLibre, Inc. (NASDAQ:MELI) was 12.31%, and its shares mislaid 10.82% implicit the past 52 weeks. MercadoLibre, Inc. (NASDAQ:MELI) has a marketplace capitalization of $94.91 billion.

Lakehouse Global Growth Fund stated the pursuing regarding MercadoLibre, Inc. (NASDAQ:MELI) successful its Q1 2026 capitalist letter:

"MercadoLibre, Inc. (NASDAQ:MELI) is the starring e-commerce and fintech level successful Latin America. Often described arsenic the Amazon and PayPal of LATAM, it benefits from almighty self-reinforcing web dynamics and an unmatched, highly businesslike logistics network. The concern has been consistently gaining stock of the rapidly increasing Latin American e-commerce marketplace and contempt the standard of their occurrence to day (revenues person grown 7-fold implicit the past 5 years to US$28 billion), we judge determination is inactive a agelong runway for aboriginal growth. Latin America offers 1 of the biggest ecommerce maturation opportunities successful the world. Penetration is astir fractional the level seen successful the US, UK and China, and we spot nary structural crushed wherefore the portion should not scope akin levels.

Results released past period were precise impressive, with gross maturation accelerating to 45% (vs 39% past quarter). While determination was immoderate flimsy compression successful operating margins owed to maturation investments – chiefly lowering the escaped shipping threshold successful Brazil – this is simply a proven playbook for the company. We enactment the determination to sacrifice immoderate near-term borderline for semipermanent worth instauration and instrumentality comfortableness successful the information they are seeing contiguous results. The strategy has driven caller purchaser acquisition, higher acquisition frequency, and grounds conversion/retention rates, starring to important marketplace stock gains. The marketplace commonly punishes impermanent reinvestment stories, and this lawsuit has been nary different..." (Click present to work the afloat text)

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