Investors interested in stocks from the Internet - Commerce sector have probably already heard of JD.com, Inc. (JD) and MercadoLibre (MELI) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that ta ...

Company Analysis - MercadoLibre operates in the fast-growing Latin American market, which is a critical factor for its success [1] - The company is considered a strong buy due to its potential for long-duration growth opportunities [1] - The analysis emphasizes the importance of fundamentals, business strategy, and financial performance in evaluating the company [1] - The intrinsic value of the stock is a key consideration, with a focus on high-quality names with reasonable valuations rather than deep discounts [1] Investment Strategy - The analysis highlights the importance of balancing a portfolio with low-volatility dividend-paying stocks alongside growth opportunities [1] - The focus is on identifying high-quality companies, including potential new stars capable of delivering exponential share price growth over the long term [1] Market Context - The Latin American market is identified as a fast-growing region, providing a favorable environment for MercadoLibre's operations [1]

I believe the stock can keep rising faster than most other stocks.The last five years were chaotic, with a global pandemic, a presidential election, inflation, swift interest rate changes, bank failures, and more. Despite this level of economic disruption, the S&P 500 is up nearly 90%. That's a good run, all things considered.As good as these broad market returns have been, MercadoLibre (MELI -0.27%) stock has left the S&P 500 completely in the dust. Shares of this Latin American business are up over 280% i ...

In the latest market close, MercadoLibre (MELI) reached $2,109.40, with a +0.32% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.7%. Elsewhere, the Dow saw an upswing of 1.26%, while the tech-heavy Nasdaq appreciated by 2.51%.Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 4.74% over the past month, outpacing the Retail-Wholesale sector's gain of 4.02% and the S&P 500's gain of 1.27% ...

Mercado Libre has reportedly secured $250 million in financing from JPMorgan to grow the business of its FinTech arm Mercado Pago in Mexico.The company will use the new resources to finance more businesses and individuals in the country, Reuters reported Thursday (Sept. 19), with a focus on Mexican small and medium-sized businesses (SMBs)Mercado Libre did not immediately reply to PYMNTS’ request for comment.Mexico is one of the Latin American countries in which Mercado Pago has seen rapid growth, according ...

MercadoLibre has great prospects, but it is not necessarily a great investment.MercadoLibre (MELI 1.37%), the leading e-commerce company in Latin America, has been unstoppable lately. The stock rose more than 50% in the last 12 months alone, bringing its total return to a remarkable 274% in the previous five years.While existing investors celebrate its outstanding stock performance, potential investors may wonder if they should buy it today to participate in future growth.  MercadoLibre has been executing a ...

This e-commerce company continues to impress investors.The past five years have been erratic. A worldwide pandemic, a couple of bear markets, severe economic troubles, and global instability have affected individuals and businesses in too many ways. Throughout it all, some corporations, though a bit battered and bruised, have performed well and continue to do so.MercadoLibre (MELI -0.24%), an e-commerce company that operates in Latin America, is one such company. Fortunately, MercadoLibre still has plenty o ...

Summary of MercadoLibre, Inc. Conference Call Company Overview - **Company**: MercadoLibre, Inc. (NASDAQ:MELI) - **Date**: September 10, 2024 - **Participants**: Martin de Los Santos (CFO), Irma Sgarz (Goldman Sachs) Key Industry Insights - **E-commerce Growth**: The commerce business in Brazil grew by 36% and in Mexico by 30% in Q2, indicating strong market performance [2][6] - **Credit Penetration**: Credit penetration in Latin America remains low at 14%, with 86% of retail transactions occurring offline, presenting significant growth opportunities [2] - **Advertising Growth**: The advertising business has grown over 50% year-on-year for the past 16 quarters, but only represents 2% of GMV compared to 5-6% for international peers, indicating room for expansion [2] Core Business Strategies - **Ecosystem Synergy**: The dual ecosystem of commerce and Fintech is emphasized, with 25% of transactions in Mexico being processed through MercadoLibre's own payment methods [5] - **Logistics Infrastructure**: 96% of items sold go through MercadoLibre's logistics, with 85% of 1.6 billion packages delivered within two days, showcasing a competitive advantage [2][3] - **Loyalty Program Enhancements**: The Meli Mais loyalty program has been revamped to include Fintech benefits, leading to increased user engagement and lower churn rates [10][13] Financial Performance - **Revenue Growth**: Overall revenues grew by 42%, with significant contributions from improved fulfillment and user experience [7][8] - **User Base Expansion**: The user base for commerce grew by 19%, while Fintech users increased by 37%, indicating strong engagement [8][21] - **Free Cash Flow**: In Q2, the company generated $678 million in free cash flow, totaling nearly $850 million in the first half of the year [35] Investment and Future Outlook - **Logistics Investment**: Continued investment in fulfillment centers is planned, with new centers opening in Mexico and Brazil to support growth [15][16] - **Credit Opportunities**: Mexico is identified as a key market for credit expansion, with less than 20% of the population owning a credit card, and a banking license application is underway [28][29] - **AI Utilization**: AI is being leveraged for various applications, including fraud prevention and customer service, enhancing operational efficiency without significant CapEx [30][31] Marketing and Brand Positioning - **Brand Investments**: Increased marketing investments have led to over 60% of traffic being organic, with successful sponsorships like Copa America reaching 300 million viewers [21][22] - **Advertising Strategy**: The advertising segment is expected to grow significantly, with plans to expand into video advertising on platforms like Disney+ [26][23] Conclusion - **Growth vs. Profitability**: The management emphasizes capturing growth opportunities while gradually improving margins, with a focus on scaling operations efficiently [32] - **Capital Allocation**: With a strong cash position of over $4 billion, the company is not currently considering dividends or share repurchases but may do so in the future if cash flows remain strong [35]

lerbank MELI's High Growth Investment Thesis Is In Overdrive We previously covered MercadoLibre, Inc. (NASDAQ:MELI) in July 2024, discussing why we had reiterated our Buy rating then, attributed to its double beat FQ1'24 earnings call, growing market share in Latam, and robust performance metrics. We had also highlighted a few metrics that readers should look out for in the FQ2'24 earnings call on August 02, 2024, with it underscoring the health of its businesses along with near-term prospects. MELI YTD ...

FG Trade/E+ via Getty ImagesWhen I last wrote about MercadoLibre (NASDAQ:MELI) on April 11, 2024, I recommended it as a strong buy. That analysis has worked out so far. The stock is up 32.22% compared to the S&P 500's (SPX) 6.57% rise. My previous article discussed how investors were disappointed in the company's fourth quarter 2023 earnings report, as it displayed shrinking margins and missed analysts' GAAP earnings-per-share ("EPS") estimates. Since then, the market has been far more pleased with the ...