MercadoLibre: A Digital Ads Giant In The Making

Aug. 22, 2023 8:30 AM ETMercadoLibre, Inc. (MELI) StockMELI12 Comments

Summary

  • In Q2 2023, MercadoLibre's digital ad business reached new heights. It is now 1.6% of MercadoLibre's $10B worth of Q2 2023 GMV.
  • In Q1, this business grew at 60%+, and, of note, it's a very high margin business that creates substantial value for all ecommerce stakeholders: the marketplace, consumer, and merchant.
  • Today, we will also discuss MercadoLibre's FinTech and ecommerce business briefly. I also shared thoughts on identifying quality businesses with decades of growth ahead.
  • In short, I like MercadoLibre at ~$1,350/share.
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Drew Angerer

The Cycle Of Life And Death

To begin this review of MercadoLibre's (NASDAQ:MELI) most recent quarter and the business broadly, I'd like to share concepts core to my investment philosophy, which underpin my investment in and ownership of MercadoLibre.

This article was written by

17.64K Followers

Louis Stevens is a former U.S. Army engineer officer who holds an MBA and a BA in political science. Since beginning his journey publishing investment research, Louis has become one of the leading analysts in the investing community, ranking in the top .1% according to TipRanks.

Louis created L.A. Stevens Research in which he runs the LAS Index, a basket of stocks chosen via his proprietary method for investing, which has consistently outperformed the indices since its launch.

Whether you're just getting started, a busy professional, or seasoned veteran running a fund of your own, Louis has served folks like yourself throughout his career in equity research and investing. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MELI, AMZN, CPNG, 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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