Advertising margin holds the key to Meesho’s profitability
AI Summary
Meesho's recent stock surge highlights investor confidence in its zero-commission model, yet the sustainability of this approach is under scrutiny as competition intensifies from giants like Amazon and Flipkart. Retail investors should monitor the company's ability to improve its contribution margin through advertising revenue, as this will be crucial for achieving profitability. The potential risks from new ventures and rising logistics costs could impact future performance, making it essential for investors to stay informed about operational efficiencies and market dynamics.
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Meesho stock surged nearly 10% to hit ₹240 on Tuesday, its highest closing price since debuting on 10 December 2025 and more than double the issue price of ₹111. But how much higher can its zero-commission marketplace model drive the stock, which cooled off a bit on Wednesday?
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Published on Livemint
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This is a market news update from Livemint, published on 23 September 2026.
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