MercadoLibre

Capital allocation has prioritized organic reinvestment into logistics, fintech stack, credit and retail media, aligned with long‑run moat widening. The company has announced record investment plans in Brazil and Mexico for 2025, remains disciplined on M&A, and uses buybacks sparingly.

Loan growth is increasingly funded with external facilities, and credit card cohorts are progressing toward profitability. We view the bias toward high‑return reinvestment as appropriate, with ongoing vigilance on credit provisioning and cohort economics.