MercadoLibre (MELI US) and DroneShield (DRO)

Hi Sidney,

MercadoLibre (MELI US) is a $US119bn e-commerce and fintech platform in Latin America, often referred to as the “Amazon + PayPal + Square of LATAM.” This is a well established tech company to rival many on the international stage:

• E-Commerce (Mercado Libre) the largest online marketplace in Latin America, across 18 countries: over 50% of its revenue.
• Fintech (Mercado Pago) a digital payments platform, originally designed for the marketplace but now used independently: around 45% of total revenue.

This is a high-growth, high-margin tech platform with strong network effects, recurring revenue from payments, and growing digital lending and logistics businesses. MELI could expand deeper into Central America or the Caribbean, where e-commerce is even less developed but globally its unlikely to succeed.

• We like MELI on 47x with Latin America still underpenetrated but you wouldn’t want to see the likes of Amazon, Alibaba, and JD.com push into the region.
• Technically it looks ok around $US2300 but after rallying 4x a deeper pullback is likely in coming 6-12 months.

In terms of DroneShield (DRO) crossings: They will be crossed after the official close of trading at 4:10 pm AEST, but before the market fully shuts down at 7:00 pm. They are reported at that time (as crossings), however, many of the market data feeds (e.g. IRESS, Bloomberg, Refinitiv) will show the trade activity in the pre-market the next day. They would have been crossings from the day prior, with trades flowing through on your screen the next morning we suspect.

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MercadoLibre Inc (MELI US)

LAST UPDATED 18/07/2025 13:58

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MercadoLibre Inc (MELI US)

LAST UPDATED 18/07/2025 13:58