This article was originally published on ETFTrends.com.
Argentina country-specific ETFs climbed Friday after e-commerce retailer MercadoLibre Inc rallied to a record high on a first-quarter revenue beat.
Lifting the broad Argentina ETFs, MercadoLibre shares surged over 20% Friday. The retailer makes up 27.9% of ARGT and AGT's underlying portfolio.
Many analysts raised their price targets on MercadoLibre after the Latin American e-commerce giant revealed "strong” payments growth that overshadowed a slowdown in gross merchandise volume, Bloomberg reports.
For example, Credit Suisse's Stephen Ju argued Wall Street numbers are “too low” and don’t credit the company for various products already in the market, such as advertising, seller working capital loans.
BTIG's Marvin Fong pointed out that The company’s off-platform TPV delivered “eyebrow-raising” growth in the quarter while payments growth and drop in shipping subsidies “more than offset” soft GMV.
“Our payments business continues to grow rapidly while we also have become more efficient in marketplace shipping spend,” Chief Financial Officer Pedro Arnt said during a conference call on Thursday.
Additionally, MercadoLibre previously raised $1.9 billion through a public share offering that provides what Arnt said “gives us greater balance sheet flexibility” and will help fund growth in payment initiatives, along with the development of logistics capacity.
Additionally, ARGT and AGT also found support from Phoenix Global Resources after the company said its revenue jumped.
Phoenix Global Resources shares increased 18.6% Friday. The oil and gas company makes up 0.4% of ARGT and AGT's underlying portfolio.
The company revealed a pretax loss of $61.5 million for 2018 compared to $286.7 million a year earlier, as revenue jumped by 25% to $177.0 million from $141.8 million, according to Alliance News.
For more information on the developing economies, visit our emerging markets category.
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