MercadoLibre: A Unique Success Story MercadoLibre, the leading e-commerce platform in Latin America, has become a household name and a symbol of success in the region. The company, founded in 1999 by Marcos Galperin, has revolutionized the way people buy and sell goods online, and has become a major player in the global e-commerce market. What started as a small online marketplace in Argentina has now expanded to 18 countries, including Brazil, Mexico, and Colombia. With over 200 million registered users and more than 70 million active buyers, MercadoLibre has established itself as the go-to destination for online shopping in Latin America. One of the key factors behind MercadoLibre’s success is its innovative business model. Unlike other e-commerce platforms, the company operates as a hybrid between an online marketplace and a payment processing system. This allows for a seamless and secure transaction process, making it a trusted platform for both buyers and sellers. In addition, MercadoLibre has continuously adapted and evolved to meet the needs of its diverse user base. The company offers a wide range of products, from electronics to groceries, and has expanded its services to include financial solutions, such as MercadoPago, which allows users to make online payments and transfers. Moreover, MercadoLibre has also played a significant role in promoting entrepreneurship and economic growth in the region. The platform has provided opportunities for small businesses and individuals to reach a wider market and has contributed to the growth of the e-commerce sector in Latin America. With its impressive growth and impact, it’s no surprise that MercadoLibre has been recognized as one of the most successful companies in the region. Its unique business model, commitment to innovation, and dedication to its users have solidified its position as a leader in the e-commerce industry.
Are you looking for a stock that is convincing both in terms of fundamentals and technical analysis? Then take a look at Mercado Libre!
The ebay of Latin America The company was founded in 1999. Its main business is an online classified and auction platform, following the model of ebay. In addition, it offers services in advertising, logistics and payment processing. Its activities are almost monopolistic in most countries in South and Central America. With advantage programs – similar to Amazon Prime – they manage to solidify their market position and establish themselves among the moat stocks. The fact that there is still huge growth potential in the region is obvious!
Gigantic growth & continuity in leadership The development of fundamental numbers looks extremely solid. Someone had a plan! It should also be noted that MercadoLibre is practically debt-free! The company has been led by Marcos Galperin since its founding, who remains the largest shareholder today with almost 8% of the shares. The current valuation, with a P/E ratio of around 70 for 2023, is high but not unusual for eCommerce companies.
Company development MercadoLibre; Source: aktienscreener.com
Strong uptrend! +75% in 12 months Over the past twelve months, the stock has managed to create higher lows and higher highs, as well as a price increase of around 75%. This indicates a continuation of the uptrend. After several strong green candles recently, it may be worth waiting for a consolidation at the current level before taking advantage of the next move.
MercadoLibre stock (ISIN US58733R1023) – 1 year in daily chart; Source: aktienscreener.com
Conclusion Mercado Libre is a unique success story with great potential still to be tapped!