MercadoLibre ($MELI) is widely followed, but some of the most important parts of the investment case remain misunderstood. In this episode of Stock Spotlight, host Michael reconnects with Shivam following his trip to Brazil and his presentation on the company to professional investors.

They discuss what Shivam’s local observations revealed about the strength of MELI’s ecosystem, why investors may be misreading the credit book and near-term margin pressure, and how the company is gaining ground in Mexico while confronting Chinese cross-border competition.

The conversation then turns to the key questions heading into earnings: whether current spending is strengthening MELI’s moat or weakening its economics, how investors should normalize reported cash flow and whether the company is best valued through a DCF or Sum-of-the-Parts framework.

The episode closes with the expectations embedded in today’s valuation, the metrics that could break the thesis and a rapid-fire round on topics not covered earlier.

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00:00 Intro

01:22 What Brazil Revealed

04:28 The Geographic Playbook

10:14 The Credit Book: Moat or Hidden Leverage?

16:13 Finding MELI's True Cash Flow

19:17 How Should Investors Value MELI?

22:24 Market Expectations Moving Forward

24:26 Rapid-Fire Questions

28:46 Outro

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Intro Music: Andrey Rossi – Seize the Day

Outro Music: Ra – Prospect

*Music provided by Uppbeat Premium

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Follow Shivam on X: https://x.com/shivamkashan

Check out Shivam's website: https://kvcapitalgroup.com

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Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.