MercadoLibre: The Crash Of A Dominant LATAM E-Commerce Operator

Jan. 09, 2023 2:09 PM ETMercadoLibre, Inc. (MELI) StockMELI24 Comments

Summary

  • MercadoLibre is the "Amazon of Latin America."
  • The company's fintech segment continues to grow at torrid rates.
  • Overall, revenues grew at a 61% clip in the latest quarter.
  • The company maintains a net cash balance sheet and is profitable on a GAAP basis.
  • The stock is historically inexpensive.
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MercadoLibre (NASDAQ:MELI) continues to trade well below all-time highs in spite of continued strong financial results. The "Amazon of Latin America" has generated solid growth in spite of reopenings as the juggernaut continues to take market share. The fintech business segment is still

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MELI, SE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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