Rebound Capital (@reboundcapital): "While I was heavily criticized for this opinion on social media, I stand by what I said (with a caveat): MELI’s pricing power is weakening. To clarify, the moat is intact, but the pricing power is lower. This lower profitability now has to be compensated for by growing much fa…"

Make money doing the work you believe in

While I was heavily criticized for this opinion on social media, I stand by what I said (with a caveat): MELI’s pricing power is weakening.

To clarify, the moat is intact, but the pricing power is lower. This lower profitability now has to be compensated for by growing much faster (which is what the management is doing).

This stock is now very interesting at $1,700 per share. I am waiting patiently for the moment market participants dump this without any fundamental considerations.

Rebound Capital

Apr 6

Mercado Libre's ($MELI) moat is weakening

While MELI looks attractive on first glance (stock down 35% but strong 45% YoY revenue growth), the competitive pressure is intensifying:

Squeezed from both sides in Brazil: In MELI’s largest market (~50% of revenue), Shopee is attacking their value-conscious buyers, while Amazon competes for the c…

May 9

2:30 PM

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