MercadoLibre: Can It Double Revenues Every Three Years As It Transforms A Continent?

Jim Sloan
22.82K Followers

Summary

  • I am a value investor who does not ordinarily look for hyper-growth hyper-expensive stocks, but MELI comes with advantages that make it worth the price.
  • A major advantage of MercadoLibre is the huge impoverished Latin American population with space for enormous growth.
  • MELI can learn from Amazon, which it resembles, but is at an earlier stage of rapid growth.

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This article analyzes MercadoLibre (NASDAQ:MELI) with a particular focus on questions about valuation. How much should an investor be willing to pay for hyper-growth? It depends to a large degree on how long that growth can

This article was written by

22.82K Followers
I am a retired professor, a retired investment adviser, and currently a private investor and full-time tennis pro. I bought my first stock in a custodial account in 1958. I am a student of history, particularly military and economic/market history. The intellectual passions of my retirement years have been markets, mathematics, and quantum theory. Recently I have found myself reading book after book on the thoughts and feelings of animals, and I believe they are subtly influencing some of my views. I have a cat I like a lot. I like to travel. I served in Vietnam.

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