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Eagle Capital highlights MercadoLibre as AI spending outshifts risks
In its Q2 2026 investor letter, Eagle Capital said MercadoLibre trades at a 20% market discount with faster expected EPS growth.
Eagle Capital Management released its second-quarter 2026 investor letter, arguing that enthusiasm around AI capital spending has helped drive strong S&P 500 earnings growth while also raising risks tied to elevated valuations and concentrated demand.
The firm said current earnings can overstate underlying economics, pointing to how semiconductor equipment is depreciated over several years even as free cash flow growth remains weaker. Eagle added that competition and capacity expansions across AI labs, hyperscalers, and semiconductors are likely to produce winners and losers.
Against that backdrop, Eagle said it is recycling capital toward opportunities outside the most crowded AI trades while keeping selective exposure to high quality beneficiaries. The letter highlighted MercadoLibre, Inc. as a major holding, describing its online commerce platforms across Brazil, Mexico, Argentina, and international markets.
Eagle noted that MercadoLibre closed on August 18, 2026 at $1,779.14 per share, with a one-month return of -1.12% and a 52 week decline of 23.84%. Yahoo Finance reported the figures and the firm’s positioning, and said MercadoLibre has a market capitalization of $90.62 billion.
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