|Bid||0.00 x 1800|
|Ask||0.00 x 900|
|Day's Range||548.72 - 560.98|
|52 Week Range||257.52 - 698.98|
|Beta (3Y Monthly)||1.45|
|PE Ratio (TTM)||2,900.79|
|Earnings Date||Oct 31, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||668.58|
Down almost 32% over the past month, the once high-flying Global X MSCI Argentina ETF (ARGT) , the largest US-listed ETF dedicated to stocks in Latin America's second-largest economy, is beset by political volatility. One glimmer of hope for the Argentina ETF is its largest holding, online retailer and e-commerce giant MercadoLibre (MELI). While note immune to Argentina's political volatility (the stock is down 20% over the past month), MercadoLibre still has the makings of a winner, according to some analysts.
Shares have fallen more than 17% since mid-August’s Argentinian primary election results and that decline represents a good entry point for investors, BTIG’s Marvin Fong said in a note to clients late Monday upgrading the stock of the Latin American e-commerce giant to Buy from Neutral.
MercadoLibre (MELI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Crosslink Capital is a San Francisco-based hedge fund founded by Michael Stark and Seymour Franklin Kaufman thirty years ago. Michael Stark is the fund’s portfolio manager and a supervisor of all investment-related activities of the fund. He holds a M.B.A. with honors and Distinction from the University of Michigan and a B.S. in Engineering from […]
(Bloomberg) -- With Argentine markets in meltdown as investors look ahead to an all-but-certain election loss for President Mauricio Macri, one bond stands out as a surprise winner amid the carnage.A convertible note from MercadoLibre Inc., the Buenos Aires-based e-commerce company with operations across Latin America, has trounced its peers with a 72% return this year. That’s the best performance in all of emerging markets.While notes from companies such as oil producer YPF SA and phone carrier Telecom Argentina SA tanked last month, MercadoLibre has avoided the worst of Argentina’s mess by relying on its home country for less than a quarter of its sales, while getting a boost from paying many of its workers in rapidly depreciating pesos. Analysts are also encouraged by the company’s plan to grow its business processing payments for other retailers, believing it could make MercadoLibre the dominant player in the region for years to come.“MercadoLibre has become recognized by investors as one of the best ways to play fintech in Latin America,” said Marvin Fong, an equity strategist at BTIG in New York who has a neutral rating on the shares. “They are kind of following the playbook that Alibaba blazed with Alipay.”Of course most of the gains in the convertible note are linked to the company’s stock performance; MercadoLibre’s New York-listed shares have more than doubled this year.MercadoLibre hasn’t escaped entirely unscathed from the turmoil in Argentina, which was triggered by a primary vote last month that signaled the leftist opposition is likely to take over the presidency from the pro-business Macri. On Aug. 12, the day after the vote, the stock dropped the most in eight months and is now down 15% from the record close it reached before the ballot. The bond is more than 10% off its peak price.Chief Executive Officer Marcos Galperin had been vocal in his support for Macri before the primary, but made a quick pivot once it became clear his preferred candidate was unlikely to win. He became the first Argentine CEO to meet with opposition contender Alberto Fernandez in the aftermath of the vote.“My stance in the campaign was public and clear, and the fact that they received me and listened to me to discuss the country going forward was very positive,” Galperin said.Of MercadoLibre’s 8,500 employees, about 4,200, including top management roles, are based in Buenos Aires, according to a spokeswoman. She declined to comment on cost savings from the 33% depreciation in the peso this year, the worst performance in the world.“While Argentina represents 21% of MELI’s revenue, the country represents a higher percentage of its costs,” said Julie Chariell, an analyst at Bloomberg Intelligence. “In fintech, where the company is focused this year, over 50% of costs are in Argentina.”To contact the reporters on this story: Justin Villamil in Mexico City at firstname.lastname@example.org;Pablo Gonzalez in Buenos Aires at email@example.comTo contact the editors responsible for this story: Julia Leite at firstname.lastname@example.org, ;Nikolaj Gammeltoft at email@example.com, Brendan Walsh, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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MEXICO CITY, Aug. 27, 2019 /PRNewswire/ -- Uniko and Mercado Libre (MELI) have partnered to transform wedding gift registries, starting in Mexico, with the Mercado Libre powered by Uniko platform. Founded in Mexico City, Mexico, in 2015 Uniko is a technology company that provides newlyweds an easy-to-use online tool to register for gifts, experiences and cash.
(Bloomberg Opinion) -- Investors in Argentina would seem to have no peers among global losers.After voters resoundingly rejected President Mauricio Macri and his free-market policies in primary elections earlier this month, the stock market, as measured by the S&P Merval Index, lost almost half its value in the biggest crash in at least six decades. The country’s currency, the peso, suffered its biggest decline since December 2015. The government’s benchmark-equivalent bond plummeted a record 26% to trade at 56 cents on the dollar, according to data compiled by Bloomberg.Argentina, whose economy is the third largest in Latin America, was already reeling from recession and inflation as high as 57.3% in May. The fear among investors now is the return to power of the Peronist party that traditionally stiffed creditors, defaulted on the nation’s bonds and rigged economic data so much that lenders had no incentive for a rescue.Amid the financial carnage, however, are two companies based in Argentina that highlight the country’s potential and showcase possible building blocks for its recovery. They are MercadoLibre Inc., Latin America’s largest online marketplace and biggest provider of online payment and digital financial services, and Globant SA, a software developer and technology services provider. Both are listed in the U.S., but if they were listed in their home country they would be 1.5 times the value of the local stock market, according to data compiled by Bloomberg. MercadoLibre and Globant increased their worldwide workforces 30% and 31%, respectively, to 7,239 and 8,384 in 2018 when most of the nation’s employers were either letting people go or not hiring during the recession.MercadoLibre is the most valuable publicly traded company based in Argentina, with a market value of $30 billion and revenue last year of $1.4 billion. Chief Executive Officer Marcos Eduardo Galperin, who is 47, started the company in his Buenos Aires garage in 1999 after studying at Stanford University. When he was a student, he successfully pitched the idea for the company to an investor while he was driving him to the airport. The company he has built now has operations in 18 countries and is referred to frequently as the Amazon.com of Latin America, with a healthy dose of PayPal thrown in because of its successful payments system.MercadoLibre, which went public in 2007, has gained 442% during the past five years and is still delivering a 109% total return this year. Its revenue is expected to increase 53% this year and 39% in 2020, according to analysts surveyed by Bloomberg. And while its 48% gross margin is down from previous years, it has been investing heavily in its businesses.Even with that success, Galperin sees a lot more room for growth. “Latin America has 600 million people and we have roughly 50 million people using our platform, up from 4 million” when the company went public, he said during an interview earlier this month at his Buenos Aires headquarters. MercadoLibre “can grow another 10 times from 50 million to 500 million” because “the number of transactions that are done per user in Latin America is still a 10th of what is happening in China.” The company derives only 21% of its revenue inside Argentina, so there’s plenty of room for expansion there.Martin Migoya, the 51-year-old chairman, CEO and co-founder of Globant, shared Galperin’s views about growth opportunities, calling the digital space “the largest single opportunity in the planet today.” His company, which was started in 2003, develops software and services for an array of mobile, social media, cloud-computing, gaming and big-data purposes, including artificial intelligence and machine learning. Its clients, 90% of which are in the U.S., have included such prominent companies as Google, Electronic Arts and Walt Disney.During an interview earlier this month at his Buenos Aires headquarters, Migoya said Globant, which generates only 5% of its sales in Argentina, is especially prepared to benefit from “a $5 trillion market in the next five years” made up of “digital transformation and cognitive transformation, which means applying artificial intelligence to pretty much everything.”Globant, which has a market value of $3.3 billion and generated $522 million in revenue last year, has gained 621% over the past five years and is returning 60% this year. Its sales are expected to increase 24% in 2019 and 21% next year, according to analysts surveyed by Bloomberg.The performances of MercadoLibre and Globant haven’t gone unnoticed. Toronto-based Dynamic Power Global Growth Fund, managed by Noah Blackstein, produced the largest total returns during the past 10, five and one years among more than 1,000 global mutual funds, according to data compiled by Bloomberg. MercadoLibre is the largest holding, accounting for more than 7% of the fund, according to the most recent filing. Globant makes up 5%.Blackstein looks for companies, not countries, when he invests. “My focus is finding the biggest opportunities for growth wherever they lie in the world, be they in technology, health care and retail,” he said in a July interview.By his measure, Argentina has some of the brightest prospects. As the country descends once again into political and economic instability, MercadoLibre and Globant can remind citizens and investors alike that a downward spiral doesn’t have to be the status quo.\--With assistance from Shin Pei.To contact the author of this story: Matthew A. Winkler at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Matthew A. Winkler is a Bloomberg Opinion columnist. He is the editor-in-chief emeritus of Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Investors tend to be biased in favor of their home markets, but that can limit them -- especially if home is not the United States.
JP Morgan analyst Andre Baggio upgraded MercadoLibre Inc. shares to overweight from neutral on Tuesday, following the Latin American e-commerce stock's nearly 10% decline in Monday's session amid concerns about Venezuela's political stability. MercadoLibre "has shown impressive resilience despite macro slowdown," Baggio wrote. "Our conclusion is that secular shift to e-commerce trumps economic worries and MercadoLibre growth should remain healthy." He's encouraged by growth trends in the company's home country of Brazil as well as its traction with financial technology products. Shares are up 2.6% in premarket trading, and they've gained 113% so far this year. The S&P 500 is up 15% in that time.
Dow Jones futures: Roku is thriving in the stock market correction, but it's an exception. AMD, Twitter, MercadoLibre, Pinterest and Trade Desk followed the rule Monday.
Argentina stocks and ETFs such as MercadoLibre and Banco Marco plunged after Argentina President Mauricio Macri was routed in Sunday's primary.
Dow stocks and other major indexes continued lower in afternoon trading as political developments in Argentina and China roiled markets around the world.