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Upturn AI SWOT - About
MELI 
MercadoLibre Inc. (MELI)
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Upturn Advisory Summary
04/01/2025: MELI (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -24.94% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 97.09B USD | Price to earnings Ratio 50.86 | 1Y Target Price 2504.55 |
Price to earnings Ratio 50.86 | 1Y Target Price 2504.55 | ||
Volume (30-day avg) 506825 | Beta 1.64 | 52 Weeks Range 1324.99 - 2374.54 | Updated Date 04/1/2025 |
52 Weeks Range 1324.99 - 2374.54 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 37.65 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 9.2% | Operating Margin (TTM) 13.53% |
Management Effectiveness
Return on Assets (TTM) 7.68% | Return on Equity (TTM) 51.5% |
Valuation
Trailing PE 50.86 | Forward PE 39.22 | Enterprise Value 100185473125 | Price to Sales(TTM) 4.67 |
Enterprise Value 100185473125 | Price to Sales(TTM) 4.67 | ||
Enterprise Value to Revenue 4.82 | Enterprise Value to EBITDA 31.17 | Shares Outstanding 50697400 | Shares Floating 47026885 |
Shares Outstanding 50697400 | Shares Floating 47026885 | ||
Percent Insiders 7.1 | Percent Institutions 84.28 |
Analyst Ratings
Rating 4.38 | Target Price 2258.88 | Buy 7 | Strong Buy 13 |
Buy 7 | Strong Buy 13 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
MercadoLibre Inc.
Company Overview
History and Background
MercadoLibre Inc. was founded in 1999 by Marcos Galperin in Argentina. Initially focused on auction-based e-commerce, it evolved to become a leading e-commerce and fintech platform in Latin America, experiencing significant growth and expansion across multiple countries.
Core Business Areas
- E-commerce Marketplace: Operates a large online marketplace connecting buyers and sellers, facilitating transactions for a wide range of products.
- Mercado Pago: A fintech arm providing payment solutions, including online payments, digital wallets, and point-of-sale systems.
- Mercado Envios: A logistics service managing shipping and warehousing, ensuring efficient delivery for marketplace transactions.
- Mercado Credito: Offers credit solutions and lending services to both consumers and merchants using the MercadoLibre platform.
- Mercado Ads: Provides advertising solutions for sellers to promote their products within the MercadoLibre ecosystem.
Leadership and Structure
The company is led by Marcos Galperin (CEO). The organizational structure includes various departments for technology, marketing, finance, operations, and regional management.
Top Products and Market Share
Key Offerings
- Marketplace Platform: The core e-commerce marketplace, facilitating millions of transactions. MercadoLibre holds a dominant market share in Latin America e-commerce. Competitors include Amazon, Magazine Luiza, and B2W (Americanas). Number of active users: 85.4 million (Q1 2024)
- Mercado Pago: A leading digital payment platform. Competitors include PayPal, StoneCo, and PagSeguro. Market share varies by country, but Mercado Pago is a significant player in several Latin American markets. Q1 2024 revenue: $1.7 billion USD.
- Mercado Envios: Logistics solutions for deliveries. Competitors include FedEx, DHL, and local shipping companies. A large part of Mercado Envios is internal, supporting the growth of Marketplace Platform.
- Mercado Credito: Lending and credit solutions. Competitors include traditional banks, fintech startups. Total credit portfolio: $3.8 billion USD (Q1 2024).
Market Dynamics
Industry Overview
The e-commerce and fintech industry in Latin America is experiencing rapid growth, driven by increasing internet penetration, smartphone adoption, and a growing middle class. The market is competitive, with local and international players vying for market share.
Positioning
MercadoLibre holds a leading position in the Latin American e-commerce and fintech markets. Its competitive advantages include a strong brand reputation, large user base, extensive logistics network, and comprehensive suite of services.
Total Addressable Market (TAM)
The e-commerce TAM in Latin America is projected to reach hundreds of billions of dollars in the coming years. MercadoLibre is well-positioned to capture a significant share of this market, estimated to be $160 billion by 2025. Its integrated platform and local market expertise provide a competitive edge.
Upturn SWOT Analysis
Strengths
- Dominant market position in Latin America
- Strong brand recognition
- Large and active user base
- Integrated e-commerce and fintech platform
- Extensive logistics network (Mercado Envios)
- Diversified revenue streams
- Experienced management team
Weaknesses
- Exposure to macroeconomic instability in Latin America
- Currency fluctuations
- High competition in certain segments
- Dependence on third-party logistics in some regions
- Regulatory risks in multiple countries
Opportunities
- Expanding e-commerce penetration in Latin America
- Growth in digital payment adoption
- Increasing demand for credit and financial services
- Leveraging data analytics to improve customer experience
- Acquiring or partnering with complementary businesses
- Expanding into new geographic markets within Latin America
Threats
- Increased competition from global players like Amazon
- Economic downturns in key markets
- Changes in government regulations
- Cybersecurity threats
- Political instability
Competitors and Market Share
Key Competitors
- AMZN
- BABA
- SHOP
Competitive Landscape
MercadoLibre benefits from its localized understanding of the Latin American market. Amazon and other large players are present, but MercadoLibre's established presence and customized solutions give it an edge. BABA and SHOP are competitors in the broad E-commerce space, and present a threat if they are able to expand into Latin America.
Major Acquisitions
Kangu
- Year: 2022
- Acquisition Price (USD millions):
- Strategic Rationale: Expanded its logistics network to increase efficiencies and reach.
Growth Trajectory and Initiatives
Historical Growth: MercadoLibre has experienced significant growth in revenue, user base, and transaction volume over the past decade, driven by the expansion of e-commerce and fintech in Latin America.
Future Projections: Analysts project continued growth in revenue and earnings, driven by increasing internet penetration, digital payment adoption, and the company's strategic initiatives. Revenue is expected to grow at an average annual rate of 20-25% over the next five years.
Recent Initiatives: Recent initiatives include expanding its logistics network (Mercado Envios), enhancing its payment platform (Mercado Pago), and investing in new technologies such as artificial intelligence and blockchain.
Summary
MercadoLibre is a strong company with a dominant position in the Latin American e-commerce and fintech markets. Its robust ecosystem, integrated platform, and extensive logistics network drive consistent growth. It needs to watch for increased competition from global players, manage macroeconomic risks effectively, and adapt to evolving government regulations.
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Sources and Disclaimers
Data Sources:
- Company Financial Reports
- Industry Reports
- Analyst Estimates
- Statista
- MarketWatch
Disclaimers:
This analysis is based on publicly available information and analyst estimates. Investment decisions should be based on individual due diligence and risk tolerance. Market share percentages may not equal 100%.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About MercadoLibre Inc.
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2007-08-10 | Co-Founder, Chairman, CEO & President Mr. Marcos Eduardo Galperín | ||
Sector Consumer Cyclical | Industry Internet Retail | Full time employees 84207 | Website https://www.mercadolibre.com |
Full time employees 84207 | Website https://www.mercadolibre.com | ||
MercadoLibre, Inc. operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates Mercado Libre Marketplace, an online commerce platform that can be accessed through mobile app or website; and Mercado Pago, a financial technology solution platform, which offers comprehensive set of financial technology services to users and other users of its e-commerce platform. It also provides Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito, which grants loans and obtains better funding alternatives; and Mercado Mercado Envios that facilitates the shipping of goods from the Company and sellers to buyers. In addition, the company provides Mercado Libre Classifieds, where users can list vehicles, properties, and services; Mercado Ads, an advertising platform, which enables retailers and brands to promote their products and services on the platform; and Mercado Shops which allows users to set-up, manage, and promote their own online webstores under a subscription-based business model. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.
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