MercadoLibre, Inc. MELI
Strong Consumer Tech sector · MercadoLibre — Latin America's Amazon-plus-PayPal, compounding fast across the region.
MercadoLibre, Inc. (MELI) is an established Consumer Tech company, graded Strong on FrontierLab's evidence-based quality rubric (data as of 2026-10-05). Revenue grew 46% year-over-year at a 42.7% gross margin. Gross-profits-to-assets is 0.29; Rule of 40 is 54.3. Net share issuance 0% YoY (flat share count). 1 risk flag is noted below. Analyst mix: 25 buy / 5 hold / 0 sell. Track record: 55% of Strong-graded names beat the S&P over 63 sessions (95% CI 38–72%, N=29). Median excess vs the S&P was +2.2%.
These sentences are generated from the day's data by deterministic templates.
Key quality signals
| Revenue growth (YoY) | 46% |
|---|---|
| Gross margin | 42.7% |
| Gross profits / assets | 0.29 |
| Rule of 40 | 54.3 |
| Net margin | 8.3% |
| Cash runway (months) | — |
| PEG | — |
| Price / sales | 2.4 |
Quality checklist
Each line is one quality test behind the grade — ✓ passed · ~ borderline · ✗ failed. Hover a metric in the tables below for what it means.
- ✓ Revenue growth — 46% (pass ≥ 20%)
- ~ Gross profits / assets — 0.29 (pass ≥ 0.33)
- · Rule of 40 — 54.3 (context — graded for software only)
- ✓ Gross margin — 42.7% (pass ≥ 38% · Consumer Tech)
- ✓ Cash generation
- ✓ Share dilution — 0%
- ✓ Competitive moat — Wide
- ✓ Market size (TAM) — Large
Grade history
Graded Strong since 2026-06-10 — no grade changes recorded yet.
How have Strong-graded names performed?
The forward returns of all Strong-graded names since each grade was recorded — the bucket this name currently sits in, not a forecast of this individual stock.
| Window | Forward record vs the S&P | Median |
|---|---|---|
| ~1 month | 50% of Strong-graded names beat the S&P over 21 sessions (95% CI 33–67%, N=30). | Median excess vs the S&P was +0.9%. |
| ~3 months | 55% of Strong-graded names beat the S&P over 63 sessions (95% CI 38–72%, N=29). | Median excess vs the S&P was +2.2%. |
| ~6 months | building — 46 more sessions needed | |
How have this name's flags scored?
| Flag | N | Mean excess vs S&P |
|---|---|---|
| Hyper-expansion — assets up ~56% in a year; aggressive expanders have historically lagged. | sample still too small to report (need ≥ 8) | |
These per-flag figures are observational — a flag firing is not a randomized assignment, so any edge can reflect what kind of names trip a flag, not the flag itself. Descriptive, not causal.
Scope: these are forward returns vs the S&P among names still covered at each horizon's end, within the curated universe — not a survivorship-clean whole-market backtest. Names later dropped from coverage are counted as attrition (not hidden), and single-session moves beyond ±300% are treated as split/data artifacts and excluded. How this is measured → · Full track record →
How it compares
Coarse same-sector, same-stage context — not a percentile or rank. GP/A is graded on its absolute level, not position.
Fundamentals
| Market cap | $86.01B |
|---|---|
| Stage | Established |
| Share issuance (YoY) | 0% · flat share count |
| Moat | Wide |
| TAM | LARGE |
| P/E (trailing) | 46.2 |
| EPS (trailing) | $36.75 |
| Burn multiple | — |
| Gross-margin trend (pts) | -3.2 |
| Cash / assets | 0.11 |
| Accruals (%) | -26.8% |
| Net debt / EBITDA | 3.1 |
| Statements as of | Q2 FY2026 · filed 2026-08-06 |
Momentum context — describes the past, not a signal
Low reached May 15, 2026 · high reached Oct 30, 2025 — by daily close.
| Price | $1696.56 (as of 2026-10-02) |
|---|---|
| Last session move | — |
| % off 52-wk high | -30.1% |
| RSI (14) | 33 |
| Relative volume | 0.6× |
Risk flags
Positive signals
Analyst mix
| Strong buy | 8 |
|---|---|
| Buy | 17 |
| Hold | 5 |
| Sell | 0 |
| Strong sell | 0 |
Ratings are context, not a price target. "Momentum" = how the mix changed over recent weeks, not a forecast.
From the headlines
MercadoLibre revenue trends analyzed; valuation discussion at ~$1,700/share.
AI take — daily, AI-generated
AI leans mixed
Impressive 46% growth and strong market position in LatAm e-commerce, but 0.29 GP/A is weak relative to peers and $1,700 valuation is already pricing in significant optimism; missing PEG makes full picture unclear.
Generated by an AI model from the day's news — an opinion for context only. Not financial advice, not a recommendation, and not a price target.
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Data as of 2026-10-05 08:19 (end-of-day). How grades are computed →