MELI - MercadoLibre's Pullback Materialized As Expected - Your Buying Opportunity Is Here
2024-04-12 16:00:00 ET
Summary
- Our recommended ~$1.45K entry point has materialized as expected, with the recent market over-reaction triggering an expanded upside potential to our long-term PT of $2.67K.
- MELI continues to chart a predictable trading pattern since the June 2022 bottom, as the management consistently delivers their profitable growth initiatives.
- Anyone concerned about the intensified investments in the 1P/ logistics operations may also rest their concerns, since these efforts have been accretive to its overall business.
- MELI continues to report high growth and adoption for its advertising platform, Mercado Ads, significantly aided by the strategic introduction of Meli Play, the ad-supported media streaming segment.
- With advertising typically being a high margin business, we believe that the management may continue delivering double digit growth over the next few years.
We previously covered MercadoLibre, Inc . ( MELI ) in December 2023, discussing its bright prospects over the next few years, thanks to its well-diversified vertically-integrated offerings across online retail, logistics, fintech, and advertising....
MercadoLibre's Pullback Materialized As Expected - Your Buying Opportunity Is Here