Brazil Stocks Plunged. Should You Buy the Dip in MercadoLibre?

Impact · against what's priced in

The re-election of Lula da Silva triggers a broad risk-off event for Brazil-exposed assets, creating a new headwind for companies like Nu Holdings and Vale. While MercadoLibre is viewed as a bargain due to its regional diversification, the immediate market reaction reflects a sharp shift in sentiment toward Brazilian political risk.

NU−0.60

Challenges what's priced in

The price assumes

The current baseline of credit losses... as a permanent feature of the maturing loan book