MELI - MercadoLibre: Entry Price Prohibitive In The Near Term (Rating Downgrade)

2024-06-06 11:11:13 ET

Summary

• MercadoLibre shares have been underperforming the market despite strong revenue and EPS growth.
• The company's success and potential are already reflected in the current price.
• Even with very attractive long-term prospects, it's important to consider entry price and near-term opportunity costs.

MercadoLibre's ( MELI ) shares have been trailing the market over the past year, despite consistently executing on its hyper-growth trajectory.

With revenues growing by approximately 40% during the period, and profit more than doubling, the valuation problem is becoming increasingly clear....

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