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MercadoLibre (MELI) Stock Price, News & Analysis

MercadoLibre logo
$1,720.36 +54.36 (+3.26%)
(As of 12/20/2024 05:40 PM ET)

About MercadoLibre Stock (NASDAQ:MELI)

Key Stats

Today's Range
$1,646.00
$1,727.17
50-Day Range
$1,666.00
$2,117.30
52-Week Range
$1,324.99
$2,161.73
Volume
714,121 shs
Average Volume
364,742 shs
Market Capitalization
$87.22 billion
P/E Ratio
60.70
Dividend Yield
N/A
Price Target
$2,267.67
Consensus Rating
Moderate Buy

Company Overview

MercadoLibre, Inc. is a leading e-commerce platform in Latin America, connecting millions of buyers and sellers across 18 countries. The company aims to democratize commerce and financial services, enabling people to buy and sell online quickly. MercadoLibre's primary business is its online marketplace, which offers a wide range of products and services, including electronics, fashion, home and garden, and vehicles. The company also provides various financial services, such as digital payments, credit, and insurance. MercadoLibre's target market is the rapidly growing middle class in Latin America, primarily underserved by traditional financial and retail institutions. Key customers include both individual consumers and small-to-medium-sized businesses. The company is headquartered in Buenos Aires, Argentina, with additional offices in Brazil, Chile, Colombia, Costa Rica, Mexico, Panama, Peru, Uruguay, and the United States. Over the years, MercadoLibre has achieved several key milestones, including becoming the first Latin American company to be listed on the NASDAQ stock exchange in 2007 and reaching a market capitalization of over $100 billion in 2021.

MercadoLibre's leadership team is led by founder and Chief Executive Officer Marcos Galperin. Galperin is a Stanford University graduate who founded MercadoLibre in 1999 as a student. Since then, he has overseen the company's growth into one of the most successful e-commerce platforms in the world. Other key management team members include Pedro Arnt, Chief Financial Officer, who joined MercadoLibre in 2015 from Visa Inc. and has over 20 years of financial and operational experience. 

MercadoLibre has experienced mixed financial growth over the past few years, driven by the mixed market sentiment over adopting e-commerce and digital payments in Latin America. The company has been reporting solid revenues and adequate income. Typically in companies like MercadoLibre, income will be a fraction of revenue due to tight profit margins. The company's founder and CEO, Marcos Galperin, is the largest shareholder, owning approximately 10% of the outstanding shares.

MercadoLibre's market capitalization is around $60 billion. The stock has traded between $600 and $1,329 recently. The price-to-earnings ratio of MercadoLibre is higher than the industry median. The price-to-sales ratio is also above the industry median. The company's price-to-book ratio is significantly higher than the industry median. These high valuation multiples reflect the strong growth prospects of the company.

MercadoLibre's stock has been volatile over the recent past as investors have reacted to news about the company's growth prospects and regulatory challenges. The stock price surged in late 2022 following the company's strong Q3 2022 earnings report, which showed revenue growth of 60% year-over-year. However, the stock price has started to cool amid concerns about regulatory challenges in several of the company's key markets. Despite this volatility, the stock has outperformed the broader market over the long term. 

MercadoLibre operates in the e-commerce and online payments industry, growing rapidly as consumers increasingly shift their online shopping and payment activities. The industry is highly competitive, with major players like Amazon, Alibaba, and PayPal all vying for market share. However, MercadoLibre has established a strong position in several key markets, including Brazil, Mexico, and Argentina. The company's online marketplace is the largest in Latin America, with over 300 million registered users and more than 12 million sellers. The company's online payments platform, MercadoPago, is also growing rapidly, with over 700,000 active merchants and over 130 million registered users.

MercadoLibre has several growth opportunities that could drive future revenue and earnings growth. The company is expanding its presence in several key markets, including Brazil, Mexico, and Argentina, where it already has a strong position. MercadoLibre also expands into new product categories, such as food delivery, logistics, and financial services. The company's online payments platform, MercadoPago, is a crucial driver of growth, as it provides a convenient and secure way for consumers and merchants to make and receive payments online. In addition, MercadoLibre is investing in technology and infrastructure to improve the user experience and drive future growth. The company's recent acquisition of the logistics startup KanguroNet is expected to help it expand its delivery capabilities and enhance the speed and reliability of its logistics network.

While MercadoLibre has strong growth prospects, the company faces risks and challenges that could impact its future performance. One of the most significant risks is regulatory uncertainty in several of the company's key markets, including Brazil, Mexico, and Argentina. Regulation changes or government policies could impact the company's ability to operate in these markets or increase costs. The company also faces intense competition from other e-commerce and online payment providers, which could impact its market share and pricing power. Additionally, the company is vulnerable to economic downturns or other external factors that could affect consumer spending habits.

MercadoLibre Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks
99th Percentile Overall Score

MELI MarketRank™: 

MercadoLibre scored higher than 99% of companies evaluated by MarketBeat, and ranked 8th out of 218 stocks in the retail/wholesale sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    MercadoLibre has received a consensus rating of Moderate Buy. The company's average rating score is 2.94, and is based on 14 buy ratings, 2 hold ratings, and no sell ratings.

  • Amount of Analyst Coverage

    MercadoLibre has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

  • Read more about MercadoLibre's stock forecast and price target.
  • Earnings Growth

    Earnings for MercadoLibre are expected to grow by 33.29% in the coming year, from $33.70 to $44.92 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of MercadoLibre is 60.70, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 112.81.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of MercadoLibre is 60.70, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 108.98.

  • Price to Earnings Growth Ratio

    MercadoLibre has a PEG Ratio of 1.24. PEG Ratios above 1 indicate that a company could be overvalued.

  • Price to Book Value per Share Ratio

    MercadoLibre has a P/B Ratio of 28.32. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

  • Percentage of Shares Shorted

    1.74% of the float of MercadoLibre has been sold short.
  • Short Interest Ratio / Days to Cover

    MercadoLibre has a short interest ratio ("days to cover") of 2.1, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in MercadoLibre has recently increased by 5.37%, indicating that investor sentiment is decreasing significantly.
  • Dividend Yield

    MercadoLibre does not currently pay a dividend.

  • Dividend Growth

    MercadoLibre does not have a long track record of dividend growth.

  • Dividend Coverage

    The dividend payout ratio of MercadoLibre is 2.12%. This payout ratio is at a healthy, sustainable level, below 75%.

  • Dividend Sustainability

    Based on earnings estimates, MercadoLibre will have a dividend payout ratio of 1.34% next year. This indicates that MercadoLibre will be able to sustain or increase its dividend.

  • Read more about MercadoLibre's dividend.
  • Percentage of Shares Shorted

    1.74% of the float of MercadoLibre has been sold short.
  • Short Interest Ratio / Days to Cover

    MercadoLibre has a short interest ratio ("days to cover") of 2.1, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in MercadoLibre has recently increased by 5.37%, indicating that investor sentiment is decreasing significantly.
  • News Sentiment

    MercadoLibre has a news sentiment score of 0.90. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.66 average news sentiment score of Retail/Wholesale companies.
  • News Coverage This Week

    MarketBeat has tracked 15 news articles for MercadoLibre this week, compared to 19 articles on an average week.
  • Search Interest

    Only 62 people have searched for MELI on MarketBeat in the last 30 days. This is a decrease of -5% compared to the previous 30 days.
  • MarketBeat Follows

    Only 26 people have added MercadoLibre to their MarketBeat watchlist in the last 30 days. This is a decrease of -46% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, MercadoLibre insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $99,249.00 in company stock.

  • Percentage Held by Insiders

    Only 0.06% of the stock of MercadoLibre is held by insiders.

  • Percentage Held by Institutions

    87.62% of the stock of MercadoLibre is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about MercadoLibre's insider trading history.
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MELI Stock News Headlines

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The AI sector continues to make waves as we move into 2025, and now is a prime opportunity to get involved—without stretching your budget! We’ve just uncovered 2 promising AI stocks trading for under $10/share, and they’re positioned for impressive growth in the coming months.
MercadoLibre, Inc. (MELI): A Bull Case Theory
See More Headlines

MELI Stock Analysis - Frequently Asked Questions

MercadoLibre's stock was trading at $1,571.54 at the beginning of the year. Since then, MELI stock has increased by 9.5% and is now trading at $1,720.36.
View the best growth stocks for 2024 here
.

MercadoLibre, Inc. (NASDAQ:MELI) issued its earnings results on Thursday, August, 1st. The company reported $10.48 EPS for the quarter, beating analysts' consensus estimates of $8.53 by $1.95. The business's revenue was up 41.5% compared to the same quarter last year.

MercadoLibre's top institutional investors include Baillie Gifford & Co. (9.25%), Jennison Associates LLC (3.70%), FMR LLC (1.73%) and WCM Investment Management LLC (1.05%). Insiders that own company stock include Emiliano Calemzuk, La Serna Juan Martin De and Marcelo Melamud.
View institutional ownership trends
.

Shares of MELI stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Based on aggregate information from My MarketBeat watchlists, some other companies that MercadoLibre investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Tesla (TSLA), Salesforce (CRM), Broadcom (AVGO) and Netflix (NFLX).

Company Calendar

Last Earnings
8/01/2024
Today
12/23/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Industry
Business services, not elsewhere classified
Sub-Industry
Business Services
Current Symbol
NASDAQ:MELI
Employees
15,638
Year Founded
1999

Price Target and Rating

Average Stock Price Target
$2,267.67
High Stock Price Target
$2,800.00
Low Stock Price Target
$1,685.00
Potential Upside/Downside
+31.8%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.94
Research Coverage
17 Analysts

Profitability

Net Income
$987 million
Pretax Margin
10.01%

Debt

Sales & Book Value

Annual Sales
$18.49 billion
Cash Flow
$28.19 per share
Book Value
$60.74 per share

Miscellaneous

Free Float
50,667,000
Market Cap
$87.22 billion
Optionable
Optionable
Beta
1.57

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This page (NASDAQ:MELI) was last updated on 12/23/2024 by MarketBeat.com Staff
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