Kemnay Advisory Services Increases Stake in MercadoLibre
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy MELI?
Source: Fool
- Share Acquisition Details: Kemnay Advisory Services Inc. increased its position in MercadoLibre by 1,385 shares during Q4 2026, with an estimated trade value of $2.91 million, bringing total holdings to 5,623 shares and reflecting a $1.42 million increase from the previous quarter due to both trading and stock price effects.
- Holding Proportion Analysis: Following this purchase, Kemnay's stake in MercadoLibre represents 1.71% of its 13F AUM, indicating a sustained bullish outlook on the company despite a 3.77% decline in share price over the past year.
- Market Performance Overview: As of February 16, 2026, MercadoLibre shares were priced at $1,988.26, with a market capitalization of $100.80 billion, maintaining rapid revenue growth despite pressures from increased e-commerce competition and rising bad loans.
- Investor Outlook: Kemnay has held MercadoLibre shares since Q2 2020, having previously sold off shares, but has now added shares in each of the last four quarters, suggesting they view the current stock price as an attractive buying opportunity, potentially leading to further purchases in the future.
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Analyst Views on MELI
Wall Street analysts forecast MELI stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 1787.860
Low
2500
Averages
2783
High
2950
Current: 1787.860
Low
2500
Averages
2783
High
2950
About MELI
MercadoLibre Inc is a Uruguay-based e-commerce business facilitator of Argentinian origins. The e-commerce products enable retail and wholesale via Internet platforms designed to provide users with a portfolio of services to facilitate commercial transactions. The Company's geographic coverage includes 18 countries of Latin America. The primary offer is an ecosystem of six integrated e-commerce services: the Mercado Libre Marketplace, the Mercado Libre Classifieds service, the Mercado Pago payments solution, the Mercado Credito financial solutions, the Mercado Envios logistic solutions including shipping, the Mercado Ads advertising platform and the Mercado Shops digital storefront solution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Transaction Uncertainty: While Paramount's offer is more attractive, the complexity and regulatory hurdles surrounding the deal remain, especially considering Paramount's smaller size may face fewer regulatory challenges, adding uncertainty to the transaction's success.
- Financial Flexibility: By not acquiring Warner Bros., Netflix retains greater financial flexibility, avoiding the heavy debt burden that could have deteriorated its financial health, thus providing more options for future investments and expansions.
- Changing Competitive Landscape: The merger of Paramount and Warner Bros. could create a new competitor, and while Netflix still holds an advantage in content acquisition, the future market competition will intensify, necessitating continued innovation from Netflix to maintain its market leadership.
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- Acquisition Price Increase: Paramount Skydance is set to acquire Warner Bros. Discovery at $31 per share, which is a significant increase from Netflix's previous offer of $27.75, indicating a reassessment of Warner's asset value and potentially enhancing Paramount's competitive position in the market.
- Increased Uncertainty: While Paramount's higher bid suggests confidence, the deal still faces regulatory scrutiny, particularly given Paramount's smaller market share, which may influence the future competitive landscape and the deal's likelihood of closing.
- Cash Flow Assurance: The acquisition includes a daily ticking fee of $0.25 per share and a $7 billion regulatory termination fee, adding complexity to the transaction but also providing cash flow assurances that enhance the deal's attractiveness to investors.
- Changing Competitive Landscape: The merger between Paramount and Warner Bros. could create a new formidable competitor in the market, which may lead to increased debt for Warner Bros. but also prompt Netflix and others to adjust their content acquisition strategies and market approaches.
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- Amazon's Growth Potential: Amazon (AMZN), as the world's largest e-commerce operator with a market cap of $2.3 trillion, showcases significant operating leverage with a 24% increase in North American operating income in Q4, driven by advancements in logistics and AI.
- MercadoLibre's Market Edge: MercadoLibre (MELI) has consistently grown revenue by over 30% each quarter for seven years, including a 45% increase last quarter, leveraging free shipping and AI to enhance ad revenue and solidify its position in the Latin American e-commerce market.
- Chewy's Defensive Business Model: Chewy (CHWY) benefits from a loyal customer base, with over 80% of sales from autoship customers, leading to an 8.4% revenue growth in the first nine months of the fiscal year, while expanding its high-margin advertising business.
- Investment Opportunity Assessment: Despite Chewy's forward P/E ratio of 16.5 indicating low market recognition of its growth potential, its expansion into pet food and medicine, along with a new membership program, suggests significant long-term investment value.
See More
Growth Potential of Amazon, MercadoLibre, and Chewy
- Amazon's Operating Leverage: Amazon's e-commerce business has achieved operational leverage through AI and robotics, with North American operating income rising 24% on a 10% sales increase in Q4, demonstrating enhanced efficiency and profitability of its logistics network.
- Strong AWS Growth: Amazon Web Services (AWS) experienced a 24% revenue growth last quarter, and as capital expenditures ramp up for 2026, its data center capacity is expected to expand further, driving sustained growth in the future.
- MercadoLibre's Hidden Growth: MercadoLibre has grown its revenue by over 30% each quarter for the past seven years, with a remarkable 45% growth last quarter, leveraging its logistics advantage in Latin America and AI-driven ad revenue growth to attract more consumers.
- Chewy's Defensive Growth: Chewy derives over 80% of its sales from auto-ship pet food, and despite a P/E ratio of 16.5, its strong 8.4% sales growth and high-margin ad business position it as a valuable long-term investment in the market.
See More
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- Nvidia Earnings Performance: Nvidia reported $216 billion in revenue for FY 2025, reflecting a 73% year-over-year growth, yet its stock fell 4%, indicating market skepticism about the sustainability of this growth, despite an expected acceleration to 77% next quarter.
- Revenue Growth Context: The company added $85 billion in revenue over the past year, with a net income of $120 billion; however, these impressive figures failed to impress investors, highlighting concerns over high valuations, with a current P/E ratio of 46.
- Competitive Pressure: Nvidia faces increasing competition from the CPU market as AI companies shift their demands, particularly with major firms like Alphabet developing proprietary processors, which could weaken Nvidia's pricing power and impact future market share.
- Mercado Libre Earnings Impact: Mercado Libre's latest earnings report showed a 47% revenue growth, but its net margin fell to 6.4%, leading to an 8% drop in stock price, reflecting market concerns over profitability, especially amid rising credit risks.
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