Sea Limited, through its Shopee Brazil arm, is aggressively competing on price against MercadoLibre.
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MercadoLibre Shares Down! Time to Buy for Long-Term Investors?
Aug 9, 2026
The creator discusses MercadoLibre's recent 7% stock drop following Q2 earnings, noting that despite revenue growth and increased user engagement, operating income is down due to the company reinvesting heavily in its ecosystem, similar to Amazon's strategy. While the market dislikes this short-term profit sacrifice, the creator suggests it could lead to long-term competitiveness, comparing it to other companies like Wise, JD Wetherspoon, Compass Group, and Costco.
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Compass Group is mentioned as a company that has employed a similar ecosystem investment strategy, and unlike JD Wetherspoon, the market has reacted positively to it.
Amazon's earnings were reported last week, and the creator notes similarities between Amazon's business model and MercadoLibre's ecosystem strategy.
MercadoLibre is down 7% after Q2 earnings, with revenue up 50% and user growth, but operating income down 17% as the company invests in its ecosystem, a strategy the market dislikes but could yield long-term benefits.
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