Here’s Why MercadoLibre (MELI) Offers Long Runway for Growth?

Here’s Why MercadoLibre (MELI) Offers Long Runway for Growth? Soumya Eswaran Wed, August 19, 2026 at 9:49 AM EDT 3 min read MELI Eagle Capital Management , an investment management company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here . In the quarter, Eagle Capital Management discussed how enthusiasm around AI capital spending has driven strong S&P 500 earnings growth while also increasing risks from elevated valuations, concentrated demand, and aggressive investment assumptions. Eagle remains a strong believer in AI but prefers constructing a portfolio that can perform across multiple outcomes rather than relying on one forecast. The firm believes current earnings can overstate underlying economics because semiconductor equipment is depreciated over several years, while free cash flow growth remains much weaker. It also expects competition and additional capacity across AI labs, hyperscalers, and semiconductors to eventually create winners and losers. These dynamics are encouraging Eagle to recycle capital toward attractive opportunities outside the most crowded AI trades while maintaining selective exposure to high quality beneficiaries. The portfolio trades at a 20% market discount with faster expected EPS growth. Please review the Strategy's top five holdings for key selections. In its second-quarter 2026 investor letter, Eagle Capital Management highlighted MercadoLibre, Inc. (NASDAQ: MELI ). …