The Bearish Case: Although this has little to do with the forward looking performance of MercadoLibre, there is retail investor sentiment that the stock is just too expensive. At the time of this writing, MercadoLibre trades at around $1,448.39 USD per share, which is down from its 52-week high of $2,020 USD. So, on one hand you are getting a nice discount right now, but on the other, you are paying a price to sales ratio of about 70, for a company that is yet to be profitable. The reason for MercadoLibre’s high share price? Part of it is the fact that there are actually a low number of shares available, with a daily average trading volume of only about 590,000 shares. The market cap of MercadoLibre is only $72 billion, so if things go right, Meli does have the potential to easily ten-bag again from here to a market cap of $700 billion. This low share float has caused many to speculate where or not MercadoLibre will announce a stock split at some point in the future. Now, the bad news. Amazon and Singapore-based Sea Limited (NYSE:SE) have both moved into Latin America over the past year, and Shopee, Sea’s eCommerce platform is already taking a large bite out of MercadoLibre’s business. Shopee is extremely successful in Brazil, MercadoLibre’s largest market, and has plans to enter Mexico later this year. This combined with the recent tech selloff, has MercadoLibre shareholders nervous about the brand’s future.