MELI - MercadoLibre Is Beating Amazon in 1 Important Category in Latin America. Here's Why Investors Should Take Note.
2024-07-14 12:20:00 ET
There's a clear heavyweight advertising champion in Latin America, and it's not even particularly close: MercadoLibre (NASDAQ: MELI) is trouncing Amazon (NASDAQ: AMZN) in this category. One research group predicts the former's advertising business will continue to skyrocket over the next few years, as I'll explain. And it shouldn't come as any surprise to anyone who knows how retail media works.
MercadoLibre has multiple segments. But one of its biggest and best is its e-commerce platform. Like Amazon in the U.S., MercadoLibre has the largest platform in many countries in Latin America, including Brazil, allowing third-party retailers to sell products to a large, captive audience.
For perspective on the scale, MercadoLibre had nearly 54 million people buy something from its e-commerce marketplace in the first quarter of 2024, which was up 16% year over year. These are people navigating to the platform and spending time on there searching around. Advertisers would love to get in front of that audience.
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MercadoLibre Is Beating Amazon in 1 Important Category in Latin America. Here's Why Investors Should Take Note.