MercadoLibre-Mercado Libre Shares Go on Sale: Is Now the Time to Buy?

Core Viewpoint - MercadoLibre's stock price has significantly declined following disappointing Q3 results, presenting a potential investment opportunity due to ongoing business investments in fintech and merchant segments [1][2]. Financial Performance - MercadoLibre reported Q3 revenue of $5.31 billion, reflecting a 35.1% increase year-over-year, surpassing consensus estimates [2]. - The company achieved double-digit growth across all regions and segments, with total payment volume, gross merchandise volume, and unique buyers increasing by 34%, 14%, and 21% respectively [2]. Investment Strategy - The company is investing in six new fulfillment centers to enhance its eCommerce and fintech capabilities while ensuring high user satisfaction [2]. - Despite the recent earnings miss, the company maintains a high double-digit growth trajectory, expected to continue into 2025 [2][3]. Analyst Sentiment - Analysts have shown a positive sentiment towards MercadoLibre, with 88% rating it as a Buy or higher, and a consensus price target suggesting a potential upside of 20% to 25% from current levels [4]. - The stock is currently rated as a "Moderate Buy" with a projected earnings growth of 31.67% [3][4]. Market Position - The recent price drop is viewed as a market signal, with potential for recovery and reaching$ 2400 by early summer 2025 if support levels hold [6]. - The company is considered a high-quality target for stock split investors, which could enhance accessibility for smaller traders and indicate strong underlying value [5].