MELI - Is 1 of MercadoLibre's Strongest Headwinds Finally Turning Into a Tailwind for the Stock?
2024-05-26 03:50:00 ET
Twenty years ago, a younger version of myself strolled the streets of Buenos Aires in search of a place to eat. I finally found a promising spot selling milanesa de carne sandwiches for 2 pesos. I can't overstate the bargain. It was an incredible sandwich, and it only cost me about $0.66.
Back then, $1 was worth about three Argentine pesos. But today, $1 is worth nearly 900 pesos . In short, Argentine inflation has been relentless and detrimental to the country's economy for years, making life hard for many hard-working Argentinians.
It's hard for companies that do business in Argentina as well, which includes publicly traded MercadoLibre (NASDAQ: MELI) . The company does business in multiple countries today, including Brazil and Mexico. However, it was founded in Argentina it is still MercadoLibre's third-largest market today.
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Is 1 of MercadoLibre's Strongest Headwinds Finally Turning Into a Tailwind for the Stock?