MercadoLibre (MELI) is strengthening profit potential by encouraging customers to use both its e-commerce marketplace and Mercado Pago fintech services. These ecosystemic users show higher shopping activity, payment volumes, assets under management and use of financial products than marketplace-only customers, and their profit contribution substantially exceeds the combined contribution of separate marketplace and fintech users. The article says Mercado Pago credit cards help keep customers engaged across both platforms, and management believes the ecosystem provides a structural competitive advantage that is hard to replicate. On valuation, the forward 12-month P/E is 30.99, above the industry average of 18.96 and Amazon's 21.85, but below its 12-month median of 34.07. Shares fell 14.4% over three months versus the industry's 15.7% decline. Consensus estimates project 44.5% sales growth for the current fiscal year but a 3.3% decline in EPS, and third-quarter sales of $10.66 billion and EPS of $9.41.
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