Core Insights - MercadoLibre's stock surged 20% in April, benefiting from its operations outside the U.S. amid tariff program disruptions [1] - The company is a leading e-commerce player in 18 Latin American countries, experiencing high double-digit growth with significant room for expansion [2] - MercadoLibre has a strong fintech segment that evolved from serving underbanked customers to offering a comprehensive financial services platform [4] Financial Performance - In Q4 2024, MercadoLibre reported a 96% year-over-year revenue increase (currency neutral), with gross merchandise volume up 56% and total payment volume up 49% [5] - Assets under management rose by 129%, and the total credit portfolio increased by 74% [5] - Operating income grew from $335 million to $820 million year-over-year, with the operating margin expanding from 13.5% to 14.1% [5] Growth Strategy - The management outlined a five-pronged long-term strategy focusing on e-commerce growth, media and advertising expansion, enhanced access to financial services, new business capture for retail merchants, and increased shareholder value [6] - Improvements in logistics and delivery times have been implemented, including the opening of new fulfillment centers to enhance same-day delivery capabilities [7] Market Position - The company issued 5.9 million new credit cards last year, more than doubling its credit portfolio, indicating strong growth in its fintech operations [8] - Investors view MercadoLibre as a safe short-term investment with substantial long-term growth potential, particularly due to its insulation from U.S. tariff impacts [8]

Core Viewpoint - MercadoLibre (MELI) is expected to report strong first-quarter 2025 results, with revenue estimates of $5.53 billion, reflecting a year-over-year growth of 27.54%, and earnings per share estimated at $7.67, indicating a growth of 13.13% year-over-year [1] Revenue Estimates - The Zacks Consensus Estimate for first-quarter 2025 revenues in Argentina is $1.15 billion, showing an 11.9% decline year-over-year [11] - Brazil's revenue estimate stands at $3.08 billion, indicating a decrease of 1.72% from the previous year [11] - Mexico's revenue is estimated at $1.21 billion, reflecting a 9.94% decline year-over-year [11] - Revenues from other countries are projected at $271 million, suggesting a slight increase of 0.74% year-over-year [12] Earnings Performance - In the last reported quarter, MercadoLibre achieved an earnings surprise of 73.69%, beating the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 16.37% [4] Factors Influencing Results - The e-commerce platform saw significant growth in 2024, reaching over 100 million unique buyers, with enhancements in user experience and new features expected to boost customer satisfaction [6] - Strong user frequency and growth in low-ticket categories are anticipated to continue, contributing positively to the top line [7] - The advertising business is expected to have marginally contributed to revenue growth, with improvements in advertising technology and partnerships [7] - Mercado Pago, the fintech arm, surpassed 60 million monthly active users, supported by new credit card launches and flexible payment options, which are likely to enhance engagement and top-line growth [8][9] Competitive Landscape - Increased competition from e-commerce giants like Amazon, Alibaba, and Walmart is expected to have intensified, particularly in Mexico and Brazil, potentially impacting margins and user retention [10] Stock Performance and Valuation - MELI shares have returned 34.1% year-to-date, outperforming the Retail-Wholesale and S&P 500 indices, indicating strong market performance [13] - The stock currently trades at a forward Price/Sales ratio of 4.15X, which is a premium compared to the industry average of 1.86X, suggesting high growth expectations but an unattractive valuation for value investors [17] Investment Considerations - The company enters the first quarter of 2025 with strong engagement across its platforms, but seasonality and increased promotional activity may pressure revenues and profits [20] - Long-term growth potential exists through rising GMV and fintech service expansion, but investors may benefit from patience ahead of earnings results [21]

Core Insights - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research methodology emphasizes a structured framework to identify companies with durable business models and mispriced cash flow potential, prioritizing simplicity and relevance in valuation [1] - The coverage focuses on underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] Research Methodology - Moretus Research employs rigorous fundamental analysis combined with a judgment-driven process, avoiding noise and overly complex forecasting [1] - Valuation is based on sector-relevant multiples tailored to each company's business model and capital structure, emphasizing comparability and simplicity [1] Investment Philosophy - The research reflects a deep respect for capital, discipline, and long-term compounding, aiming to elevate the standard for independent investment research [1] - The insights provided are designed to be actionable, focusing on what truly matters in modern equity analysis [1]

Core Insights - MercadoLibre, Inc. will release its financial results for the first fiscal quarter ending March 31, 2025, on May 7, 2025 [1] - The company will host a video conference, conference call, and audio webcast on the same day at 5:00 p.m. Eastern Time [1] Company Overview - MercadoLibre is the largest online commerce ecosystem in Latin America, based on unique visitors and processed orders, and is a leading fintech platform in the region [5] - The company operates in 18 countries, including Argentina, Brazil, Mexico, Colombia, Chile, and Peru [5] E-commerce and Fintech Services - MercadoLibre provides a robust and safe environment for buyers and sellers, fostering a large e-commerce community in Latin America, which has a population of over 650 million [6] - The company offers world-class technological and commercial solutions tailored to the cultural and geographic challenges of digital commerce in Latin America [6] - Through its fintech platform, MercadoPago, the company provides a comprehensive set of financial technology services, including digital accounts, online payments, insurance, savings, investments, and credit lines for individuals and merchants [7]

Core Insights - MercadoLibre (MELI) has had a strong start in 2025, leading to positive investor sentiment [1] Company Performance - The stock prices referenced were from the afternoon of April 29, 2025, indicating a specific timeframe for the performance evaluation [1] - The video discussing this performance was published on May 1, 2025, providing timely insights into the company's status [1]

Montevideo, Uruguay,, April 30, 2025 (GLOBE NEWSWIRE) -- Mercado Libre (NASDAQ: MELI), the leading e-commerce and fintech platform in Latin America, released the sixth episode of its podcast series, Inside Mercado Libre, "Acquiring with Paula Arregui, Fintech Acquiring Senior Vice President.” The Inside Mercado Libre podcast, hosted by Investor Relations Officer, Richard Cathcart, provides investors with unique access to the company executives’ strategic perspectives.  In the latest episode, Paula Arregui r ...

The S&P 500 is making a slow rebound from its tariff-induced plunge a few weeks ago, and it's now down 6% year to date.Although investors use the index as a proxy for how the overall market is doing, it's important to keep in mind that the S&P 500 is a weighted-average index whose largest components account for a large portion of its performance. That means the market's largest U.S. companies, like Apple, Microsoft, and Nvidia, will have an outsized impact on the whole.Any company that could be negatively a ...

Industry Overview - Recent tariff concerns from the U.S. government have negatively impacted the technology sector, leading to a decline in many tech stocks [1] - Parts of the tech industry that are less reliant on hardware may present investment opportunities as negative sentiment subsides [2] Company Analysis: Meta Platforms - Meta Platforms' shares have decreased nearly 30% from their all-time high and are down about 11% year-to-date [3] - Despite recent volatility, Meta continues to show strong growth potential, with an average quarterly earnings surprise of 12% and revenue surprise of 2% over the last five years [5] - Meta's revenue has more than doubled from $75 billion to $165 billion, and net income has nearly tripled from $21 billion to $62 billion during the same period [6] - Approximately 97% of Meta's revenue comes from advertising, making it less susceptible to the impacts of tariffs [7] Company Analysis: The Trade Desk - The Trade Desk's shares have fallen significantly, down 64% from their high, primarily due to a rare earnings miss in Q4 [8][10] - The company's transition to a new AI-powered technology platform is seen as a temporary setback, with digital advertising expected to continue growing [9] - In 2024, brands spent $12 billion on The Trade Desk, which operates in a $900 billion-plus market, indicating substantial growth potential [10] - The Trade Desk generated 87% of its gross billings in the U.S., suggesting that tariffs may not significantly impact its business [11] Company Analysis: MercadoLibre - MercadoLibre operates in e-commerce, fintech, and logistics across 18 Latin American countries, thriving despite regional challenges [14] - The company generated $20.8 billion in revenue in 2024, a 38% increase from the previous year, with net income rising 94% to $1.9 billion [16] - Despite tariff concerns, MercadoLibre's stock has risen over the past year and is currently down approximately 10% from its highs [17] - The company's P/E ratio has fallen significantly, making it an attractive option for investors looking to avoid tariff-related pressures [17]

The CEO of Argentina's MercadoLibre — often called the Amazon of Latin America — sees big opportunity for Latin America in the U.S.-China trade war."If Latin America plays its cards well, I think could benefit from this volatility," MercadoLibre CEO and founder Marcos Galperin told CNBC's Robert Frank on the sidelines of Riverwood Capital Management's LatAm Tech Forum in Miami.Galperin is Argentina's richest person with an $8.7 billion fortune by Forbes' estimate.Shares of MercadoLibre, an e-commerce and pa ...

The market expects MercadoLibre (MELI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, ...