MELI - MercadoLibre Stock Is A Growth Beast At A Reasonable Price

2024-05-22 10:49:35 ET

Summary

• MercadoLibre is the largest online trading ecosystem in Latin America, with a focus on improving e-commerce and digital financial services.
• The company has seen significant growth in its fintech division, with a credit portfolio exceeding $4.4 million and the issuance of 1.5 million credit cards.
• Despite challenges in Argentina's economy, MercadoLibre has managed to offset negative effects and maintain strong financial performance.
• I expect a continued contraction of MELI's key multiples amid rising earnings, which should ultimately lead to a continuation of the current upward trend in the medium term.
• MELI is a "Buy" right now, in my opinion.

My Thesis and Reasoning

As we can grasp from the recent 10-Q 's company description, MercadoLibre, Inc. ( MELI ) is the largest online trading ecosystem in Latin America, one of the leading fintech platforms in the region. The firm operates in 18 countries, including Argentina, Brazil, Mexico, Colombia, Chile, and Peru, and focuses on improving e-commerce and digital financial services through a complete set of technology solutions. Its e-commerce platform creates a secure environment for buyers and sellers and fosters a thriving community in a region with >650 million people and rapidly growing internet and e-commerce penetration. In addition, its fintech platform MercadoPago offers a wide range of financial services. Individuals benefit from digital accounts with debit cards, online payments, insurance, savings, investments, and credit lines, while merchants can utilize both online and physical point-of-sale payment processing services and digital accounts....

For further details see: