MELI's margins are getting squeezed. Operating margin dropped to 9.8 percent and gross margin fell 260 basis points. Now that hurts. They're spending like crazy on shipping subsidies and credit cards to keep up with Shopee and Temu.
Shopee actually passed them in Brazil on order volume. That's bad. Like, really bad. Meanwhile, they're sinking billions into warehouses. They're basically betting everything on logistics and hoping it pays off.
Stock is down almost 40 percent from last summer's highs. I think we've reached the sell point.