MercadoLibre, a rapidly growing South American e-Commerce platform, saw significant gross merchandise and revenue growth in Q4'24 and FY 2024, driven by strong customer acquisition. I previously rated MercadoLibre a strong buy due to impressive financial metrics, particularly in core markets Mexico and Brazil, indicating robust business momentum. The company achieved 102% year-over-year net revenue growth in FY 2024, and operating margins are growing.
It's been an interesting start to 2025 to say the least -- far more interesting than the 2% decline in the S&P 500 might suggest. The market has been volatile, and there have been many clear winners and losers of the first quarter.
Higher rates have caused MercadoLibre's valuation to compress, expanding the forward returns it offers. Because risk = return, we'd expect the business' risk to also have expanded. But the opposite has been true: MercadoLibre is now more mature and more durable than ever, while remaining on a runway for growth that spans many years into the future.
MercadoLibre (MELI) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.
MELI expands investments in Mexico and improves risk-mitigation strategies, presenting a compelling entry point for investors in 2025.
In the closing of the recent trading day, MercadoLibre (MELI) stood at $2,067.57, denoting a +0.08% change from the preceding trading day.
The S&P 500 is down so far in 2025, and this might be the opportunity to be greedy in the way that Warren Buffett is so famous for talking about. Investors are fearful because of economic uncertainty, but many companies are performing well and have huge opportunities.
MercadoLibre (MELI) is well positioned to outperform the market, as it exhibits above-average growth in financials.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
MercadoLibre stock has obtained an appealing return despite weak equity performances in core markets. In Q4, the company reiterated its strong growth, with net income growing 287% year-over-year. MercadoLibre combines robust growth with an undervaluation compared to its history and optimistic sell-side analysts' ratings.
Looking at the history of MercadoLibre (MELI 1.59%) stock, one might feel it is too late to buy. Since the company launched its initial public offering in 2007 at $18 per share, the stock has risen more than 110-fold.
MercadoLibre (MELI) concluded the recent trading session at $2,021.37, signifying a +1.59% move from its prior day's close.