MELI - MercadoLibre, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
497.62
+3.20 (+0.65%)
At close: 4:00PM EST
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Trade prices are not sourced from all markets
Previous Close494.42
Open491.42
Bid465.00 x 900
Ask521.19 x 800
Day's Range489.58 - 499.20
52 Week Range257.52 - 698.98
Volume247,659
Avg. Volume469,293
Market Cap24.592B
Beta (3Y Monthly)1.61
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend Date2017-12-28
1y Target EstN/A
  • MercadoLibre (MELI) Reports Loss in Q3, Revenues Improve Y/Y
    Zacks

    MercadoLibre (MELI) Reports Loss in Q3, Revenues Improve Y/Y

    MercadoLibre's (MELI) third-quarter results benefit from solid total payment volume growth and strong momentum across all the regions. However, increasing expenses remain a woe.

  • Thomson Reuters StreetEvents

    Edited Transcript of MELI earnings conference call or presentation 31-Oct-19 8:30pm GMT

    Q3 2019 Mercadolibre Inc Earnings Call

  • Barrons.com

    The eBay of Latin America Lost More Than Expected. Here’s the Good News.

    MercadoLibre stock fell as its quarterly loss was $2.97 a share, while analysts expected a loss of 3 cents.

  • MercadoLibre Hits 6-Month Low as Marketing Expenses Hurt Margin
    Bloomberg

    MercadoLibre Hits 6-Month Low as Marketing Expenses Hurt Margin

    (Bloomberg) -- The Latin American e-commerce retailer MercadoLibre Inc extended a two-day slide after higher marketing expenses hurt profitability in third quarter, offsetting a strong top-line and positive news from its payments segment.Shares of the Buenos Aires-based company fell as much as 6.1% to below $90 in the U.S. to the lowest since early May.“Higher-than-expected marketing-related expenses and significant credit-quality deterioration in the still-incipient Brazilian credit business” were among the weak spots in the quarter, Itau BBA analysts led by Rodrigo Nistor wrote in a report, reaffirming an underweight rating for stock. “The payments segment was again a positive surprise.”Mercado Libre is still seeing high levels of bad debt in Brazil consumer credit, Chief Financial Officer Pedro Arnt said on the earnings call Thursday. As a result, it’s tried to mitigate Brazilian losses through adjustments to its pricing and scoring models, but continues to suffer from higher marketing expenses and tax losses in Mexico and Colombia, Arnt said.“The extent to which investors may take fright from the significant ramp-up in marketing investment is unclear,” Bradesco BBI analysts led by Richard Cathcart wrote in an Oct. 31 report. “But we note that management has a strong track record of generating payback from such decisions.”Here’s what Wall Street analysts have to say:Barclays, Deepak MathivananWhile key performance indicators continue to be strong in the fintech segment, GMV growth in Brazil came in below our forecastEbitda loss was meaningfully higher than anticipated as the firm kicked off its new branding campaigns“Overall, 3Q was a mixed print, but the strong performance in the fin-tech business triumphs the noise in other areas”Price target to $660 from $700; overweight maintainedBradesco BBI, Richard CathcartSharp rise in marketing investment and some pressure from bad debts in BrazilResults are consistent with outperform rating“With unique marketplace buyers and active wallet payers growing at such an accelerated rate, we remain confident that MercadoLibre can maintain its leadership in e-commerce and build a competitive advantage in payments”Cowen, Tom ChampionResults look good but less strong than prior quartersPrice target cut to $596 from $651; market perform reiteratedMercadoLibre’s results were impressive again this quarter with payments volume beating Cowen’s estimateBut Brazil GMV growth decelerated and gross margins and operating margins missed Cowen forecastsItau BBA, Rodrigo NistorMercadoLibre reported a mixed set of resultsPayments segment was again a positive surpriseHigher-than-expected marketing-related expenses and significant credit-quality deterioration in the still-incipient Brazilian credit business were among the weak spotsUnderperform rating maintainedWhat Bloomberg Intelligence says“MercadoLibre surprised with a return to operating losses as marketing costs spiked and bad loans increased in Brazil merchant credit. Higher marketing spending accounted for 80% of the jump in operating expense, but was a strategic move to build the marketplace brand after delivery improvements and to broaden awareness of MercadoPago”-- Julie Chariell, senior consumer products analyst-- Click here for the research\--With assistance from Carolina Millan.To contact the reporters on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net;Scott Squires in Buenos Aires at ssquires4@bloomberg.netTo contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • MercadoLibre (MELI) Reports Q3 Loss, Lags Revenue Estimates
    Zacks

    MercadoLibre (MELI) Reports Q3 Loss, Lags Revenue Estimates

    MercadoLibre (MELI) delivered earnings and revenue surprises of -9800.00% and -0.31%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?

  • MercadoLibre Earnings Miss, Revenue Beats In Q3
    Investing.com

    MercadoLibre Earnings Miss, Revenue Beats In Q3

    Investing.com - MercadoLibre (NASDAQ:MELI) reported third quarter earnings that missed analysts' expectations on Thursday and revenue that topped forecasts.

  • Last Minute Thought: Buy or Sell MercadoLibre (MELI) Stock Before Earnings?
    TipRanks

    Last Minute Thought: Buy or Sell MercadoLibre (MELI) Stock Before Earnings?

    We’re at the height of the earnings season, and the reports are coming in think and thin. Watch closely, because markets will react quickly should a company report unexpected results. And those surprises don’t have to hurt, either. So far, about half of the S&P 500 firms have reported quarterly results, and so far, those results are about 2% above the estimates. It’s good news, considering investors had expected a slow season.You can keep track of your favorite stocks using TipRanks Earnings Calendar. This handy tool offers a convenient calendar showing exact reporting dates for over 5,500 stocks. Click on the one you like, and you’ll get the nitty-gritty details – the consensus EPS forecast, the period covered, the year-ago results, plus a clear chart showing the last two years’ actual results.We’ve opened up the calendar and found a "strong buy" stock reporting earnings today after market close. MercadoLibre (MELI)So much attention goes to the American tech companies that it’s easy to overlook other markets. Which is too bad, because there are plenty of great stocks in the foreign markets. MercadoLibre, a leader in the Latin American e-commerce industry, is one of those. This Argentine company incorporated in the US and trades on the New York Stock Exchange. This year marks its twentieth year in business.It’s been good business, too. MercadoLibre boasts over 175 million users, and brings in over $1.2 billion in annual revenues. The company operates five divisions, including an e-commerce platform, an advertising platform, and financial services. MercadoLibre processes more than 140 million annual transactions and handles both the seller and customer ends of e-commerce.Putting pressure on the company are the results of Argentina’s recent election. The defeat of the business friendly Macri government raises fears that the new government may push anti-capitalist policies and restrict growth. Still, the forecast for Q3 is strong, and MercadoLibre has resources to weather a storm. Analysts expect to see over $604 million in quarterly revenue, or 70% year-over-year growth. Even better, the 2-cent EPS forecast will effectively cancel last Q3’s 23-cent loss.4-star analyst Andre Baggio, of JPMorgan, sees MELI as a growth prospect. He writes, “We are Overweight on MercadoLibre, as the company presents a unique combination of leadership on e-commerce coupled with accelerating growth on FinTech. Moreover, MELI showed impressive resilience to macroeconomics slowdown, being able to sustain growth even in unfavorable conditions.” Baggio’s $750 price target suggests an impressive 38% upside for the stock. (To watch Baggio's track record, click here)The Street largely seems to echo Baggio’s positive sentiment, considering TipRanks analytics showcase MELI as a Strong Buy. Out of 11 analysts polled by TipRanks in the last 3 months, 9 are bullish on MercadoLibre stock, while 2 remain sidelined. With a potential upside of about 31%, the stock’s consensus target price stands at $700. (See MercadoLibre stock analysis on TipRanks)To find good ideas for technology stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy tool, a newly launched feature that unites all of TipRanks’ equity insights.

  • 5 Must See Big Tech Earnings Charts
    Zacks

    5 Must See Big Tech Earnings Charts

    How is Big Tech holding up in the great rotation?

  • Bloomberg

    Sorry Bezos, Brazil Already Has an Amazon. It's MercadoLibre

    (Bloomberg) -- When Amazon.com Inc. announced it was rolling out its popular Prime delivery subscription service in Brazil last month, shares of  local e-commerce competitors tanked. Investors also got jittery in 2017, when the world’s largest online retailer launched a marketplace to sell electronics. In both cases, the shares recovered quickly once investors reminded themselves of a durable truth about Brazilian e-commerce: Local firms have a firm grip on the market and are in little danger of succumbing to the American interloper.So it goes for Amazon in Latin America’s largest economy. Seven years after entering Brazil, the Seattle-based company is battling to gain traction against a handful of local competitors with extensive delivery networks, strong brands and a deep understanding of Brazilian shoppers.With only two distribution centers and a more limited selection than Brazilian players, Amazon can’t compete head to head with the likes of MercadoLibre Inc. and Magazine Luiza SA. So it has chosen instead to lure customers with Prime, which offers subscribers free shipping, music, movies and games. Earlier this month, Amazon also announced it would start selling gadgets powered by the Alexa digital assistant, which has been tailored for Portuguese speakers and can sing soccer team anthems—a gesture to the nation’s ardent fans. The bet is that if Brazilians get addicted to Alexa and Prime’s entertainment offerings—also tweaked for local consumption—they’ll start shopping on Amazon, too. “It’s an important market for them to succeed,” says RBC Capital Markets Analyst Mark Mahaney. “It’s one that they recently made a major initiative into, and it’s a bit of a test on how globally receptive consumers are to Amazon’s value proposition.”Amazon is counting on its international operations, which last year generated 28% of revenue, to help offset slowing sales growth in its home market. On Thursday the company posted its first year-over-year quarterly profit decline since early 2017 after acknowledging that it was spending more than expected on an ambitious effort to speed up deliveries.Its international efforts have been spotty. Amazon failed to build a major business in China, where Alibaba Group Holding Ltd. and JD.com Inc. outmaneuvered it on their home turf. So Amazon instead has focused on India, pledging to spend more than $5 billion to take on local heavyweight Flipkart Online Services Pvt, acquired last year by Walmart Inc. In the last few years, Amazon has also pushed into Mexico, Turkey and Australia.Mahaney says Brazil, the world’s sixth most populous nation, is probably Amazon’s second-most important international outpost. Like India, the country has large pockets of rural poor but is also home to millions of middle-class urbanites who have become comfortable shopping from their smartphones. In fact, mobile shopping represents 43% of online purchases, compared with 5% five years ago, according to Nielsen’s e-commerce researcher Ebit. E-commerce is relatively well established in the big cities. In Sao Paulo, contract workers on motorbikes, bicycles and scooters weave through the traffic delivering everything from smartphones to beer. But outside the cities and the more developed South and Southeastern regions, drivers must contend with rough roads and bandits bent on stealing their cargo. In some remote areas, it often takes more than two weeks to get a package ordered online and delivery fees can exceed the cost of the products.Such conditions tend to favor local companies. The largest—and only pure e-commerce player—is MercadoLibre. Founded 20 years ago in Buenos Aires, the company has a sprawling logistics operation, online payment services and 12 million-plus vendors selling more than 260 million items. “If you talk to any company that delivers all over Brazil, it has a network that it developed with a series of partners,” says Chief Operating Officer Stelleo Tolda. “We’ve nailed it.”Not that he’s taking his 33% market share for granted. MercadoLibre plans to spend more than 3 billion reais ($748 million) next year on financial services and opening more distribution centers that will let it expand next-day delivery to at least 16 cities.The three other main local players rely on their own brick-and-mortar operations and have converted sections of their stores into pickup centers for online orders—a major plus in a country larger than the continental United States. Magazine Luiza, which started out selling televisions, has more than 1,000 locations across the country where shoppers can retrieve appliances and shoes and will soon be able to pickup diapers, makeup and other products purchased on the website.Amazon has few of these advantages and offers a more limited array of merchandise; of the more than 20 million products it sells in Brazil, 13 million are books. Its two distribution centers are located near Sao Paulo, meaning even Amazon Prime members can count on shipping in two days or more only for about 500,000 products and in 90 cities. The company says deliveries in other urban centers will take three days or more.Instead of fighting a ground war, Amazon appears to be trying to engage consumers with Prime and the range of entertainment options bundled with the $2.50-a-month subscription. The company is already starting to tailor the content to local tastes; coming soon is a documentary on Brazil’s soccer team. “Netflix and Spotify have already taught this type of consumption to [Brazilians],” says Alexandre Van Beeck, a partner at consulting company GS&Consult. “With Prime, Amazon will learn that I like a certain type of movie, that I read a certain type of book in the Kindle. And with this data, it will be able to offer me certain products with more assertiveness and less costs.”Perhaps, but matching the delivery prowess of  local players won’t be easy. “Stringing together a network of individual carriers is pretty complicated,” says Bloomberg Intelligence senior analyst Julie Chariell. She notes that it took local e-commerce company B2W Cia. Digital as much as 10 years to put together its shipping network. The company is already testing delivery drones, evidence of its growing sophistication. Could Amazon acquire a local delivery startup? Chariell says it’s possible but that these companies have plenty of backing from venture and private-equity firms and so have little incentive to sell out to a U.S. company. Even if Amazon did manage to acquire a mid-sized outfit, the company would still need to fold it into existing operations and then extend its geographic reach. “It’s not necessarily an instant solution,” Chariell says.Amazon doesn’t need to dominate Brazilian e-commerce to succeed there. Online spending is expected to grow 87% to 128.7 billion reais by 2023, according to Euromonitor International. That means Amazon can generate new international revenue even if it doesn’t take share from rivals. So long as spending is shifting from stores to websites and smartphones, Amazon stands to gain simply by being a prominent option.At an industry event in August, Amazon’s Brazil chief Alex Szapiro evinced little urgency. “We’re in no hurry,” he said, echoing his employer’s well-known penchant for strategic patience. “What happens in the United States today took 25 years. We want to do it fast, but doing it right is more important than doing it fast.”\--With assistance from Spencer Soper and Matt Day.To contact the author of this story: Fabiola Moura in Sao Paulo at fdemoura@bloomberg.netTo contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Dorsal Capital Management’s Top Stock Picks
    Insider Monkey

    Dorsal Capital Management’s Top Stock Picks

    Dorsal Capital Management was launched in 2009 by Ryan David Frick and Oliver Evans. Mr Frick is the fund’s Chief Investment Officer, while Mr. Evans retired in 2014. Ryan David Frick holds a MBA from Stanford University. Prior to launching Dorsal Capital Management, he gained rich experience working as an Analyst at Credit Suisse First […]

  • Is PayPal Stock A Buy Right Now? Here's What Earnings, Charts Show
    Investor's Business Daily

    Is PayPal Stock A Buy Right Now? Here's What Earnings, Charts Show

    Top digital payments stock PayPal is one of the leading growth stocks in the current stock market. But is it a buy right now?

  • Zacks

    PayPal (PYPL) Beats Earnings and Revenue Estimates in Q3

    PayPal's (PYPL) third-quarter results reflect an uptick in net new active accounts, strengthening customer engagement on its platform and portfolio strength.

  • MercadoLibre (MELI) Reports Next Week: Wall Street Expects Earnings Growth
    Zacks

    MercadoLibre (MELI) Reports Next Week: Wall Street Expects Earnings Growth

    MercadoLibre (MELI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • Barrons.com

    PayPal Stock Is Popping After Earnings and Payment Volume Beat Estimates

    The company’s total payment volume, a closely watched metric, reached $179 billion in the third quarter, up 25% from a year ago.

  • Zacks

    E-commerce Stocks' Q3 Earnings Roster: AMZN, EXPE, MELI & W

    Here is a sneak peek into how four e-commerce stocks are poised ahead of their third-quarter 2019 earnings releases.

  • What's in the Offing for PayPal's (PYPL) Earnings in Q3?
    Zacks

    What's in the Offing for PayPal's (PYPL) Earnings in Q3?

    PayPal (PYPL) third-quarter 2019 results are anticipated to reflect portfolio strength. However, losses from investments in MercadoLibre and Uber have weighed on the results.

  • MercadoLibre Plans to Double Down on Its Brazilian Bet Next Year
    Bloomberg

    MercadoLibre Plans to Double Down on Its Brazilian Bet Next Year

    (Bloomberg) -- MercadoLibre Inc. will “for sure” invest more than 3 billion reais ($718 million) in Brazil next year with a focus on financial services and logistics, Chief Operating Officer Stelleo Tolda said.MercadoLibre, the e-commerce pioneer in Latin America now worth $28 billion, plans to invest more in its financial services and payments unit while opening more distribution centers and seeking partnerships to cut delivery time further, Tolda said in an interview at Bloomberg’s Sao Paulo office.The early guidance on outlays for next year follows investments of 2 billion reais in Brazil last year and 3 billion reais this year. As competition heats up from the likes of Amazon.com Inc. and local retailers including Magazine Luiza SA and B2W Cia Digital, MercadoLibre is defending its market share of about 33% and looking to get customers to lean heavier on its services for day-to-day shopping and payment solutions, Tolda said.“We strongly believe in the growth potential of this business, so it’s too early to focus only on profitability,” said Tolda, who met MercadoLibre’s founder Marcos Galperin at Stanford University in the late 90‘s and has been leading the Brazil business since the start, 20 years ago.MercadoLibre, based in Buenos Aires but with operations in 18 countries and shares trading in New York, is offering same-day delivery in Sao Paulo and looking to expand its next-day delivery to at least 16 cities in 2020.The firm currently operates two distribution centers near Sao Paulo and will open facilities in other regions, to speed up its delivery in a country larger than the continental U.S.Brazilian e-commerce has more than doubled to 68.8 billion reais between 2013 and 2018 and should almost double again through 2023, according to market researcher Euromonitor International.The newest focus for the company is on the fast-moving train of fintech services courting large parts of the population without bank accounts.MercadoPago, the payments platform, has been leading growth at the company. The number of transactions more than doubled year-on-year in the second quarter with the value surging 47% to $6.5 billion. That compares to $3.4 billion in gross merchandise value from the marketplace.“We see opportunities not only in payments, but also in all financial services, including credit, investments and eventually insurance,” Tolda said. “MercadoPago is also the way through which we believe we’ll have higher recurrence in people’s lives.”MercadoLibre needs to invest in marketing for the MercadoPago brand and search out companies to provide payment solutions and individual customers to use the virtual wallet. Offering payment with cards as well as with QR codes, MercadoPago has already cut deals with a wide variety of brick-and-mortar companies in Brazil such as gas stations, drugstores and the Sao Paulo subway.MercadoLibre doesn’t plan to spin off the financial products unit, which it sees as a way to increase interactivity with customers and attract shoppers into its e-commerce platform, Tolda said. Currently, the average Brazilian e-commerce consumer buys an item per month and MercadoLibre wants to intensify the frequency of purchases to at least once a week, Tolda said.The company recently opened new categories of no-gender fashion and sustainable products in its e-commerce platform to attract younger consumers. It also plans to expand next-day delivery to 16 larger cities, from eight currently, after closing a deal with the cargo unit of airline Azul SA that could help reduce its dependence on the country’s post offices.MercadoLibre has surged 93% year-to-date to $566 on the Nasdaq. That compares to 18% for Amazon, 28% for Alibaba Group Holding and 39% for EBay Inc.After raising $1.9 billion earlier this year, including a big chunk of it from PayPal Holdings Inc., MercadoLibre is focusing on investment in its core businesses rather than any bold new acquisitions, according to Tolda. Talks are ongoing with PayPal on how to collaborate in several areas despite being competitors.“Theirs is a traditional online payment model, and we’re seeing even greater potential offline than online,” with MercadoPago, Tolda said. “It’s an interesting path, this idea of ‘frenemy,’ that exists in the technology market.”To contact the reporters on this story: Fabiola Moura in Sao Paulo at fdemoura@bloomberg.net;Vinícius Andrade in São Paulo at vandrade3@bloomberg.netTo contact the editors responsible for this story: Daniel Cancel at dcancel@bloomberg.net, ;Nick Turner at nturner7@bloomberg.net, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Libra Loses a Quarter of Its Members as Booking Holdings Exits

    (Bloomberg) -- The Libra Association hasn’t officially launched but has already lost a quarter of its membership, as Booking Holdings Inc., an online travel company that operates websites including Kayak.com and Priceline.com, joined Visa Inc., Mastercard Inc. and four other companies in leaving the controversial cryptocurrency project spearheaded by Facebook Inc.With the departure of Norwalk, Connecticut-based Booking, the Libra Association now has 21 founding members remaining of the original 28 companies that signed on to the association in June. PayPal Holdings Inc., Stripe Inc., MercadoLibre Inc. and EBay Inc. in the past two weeks have also said they would abandon the project.The remaining members of the Libra Association, a nonprofit that would manage the cryptocurrency, planned to meet Monday in Geneva, Switzerland to finalize its governing charter and initial membership.Libra came under intense scrutiny from lawmakers and regulators as soon as Facebook announced the project. Regulators warned that the cryptocurrency, originally set to launch next year, could be used by criminals if not properly monitored, while lawmakers pilloried Facebook’s track record at hearings in July with Libra co-founder David Marcus.Officials in some countries, including Germany and France, announced that they would ban Libra, saying that the currency could be a threat to monetary policy, among other concerns.Visa, Mastercard and Stripe left the project shortly after receiving a letter from Democratic senators Brian Schatz of Hawaii and Sherrod Brown of Ohio, warning that they could face increased scrutiny if they stayed on board.Brian Armstrong, the CEO of Libra-member Coinbase Inc., on Sunday said the pressure felt “un-American.” “Why the need for the intimidation tactics? This would be called anti-competitive/monopolistic behavior if any private company did it,” Armstrong wrote on Twitter.In the face of the departures, Libra has said more than 1,500 companies have expressed interest in joining the association and that the currency wouldn’t launch until it satisfied regulators’ concerns.Developers have continued to advance the open-source code that would underlie Libra. However, Visa, Mastercard and PayPal could have provided critical experience in navigating U.S. financial regulators’ concerns, making their departures particularly painful. Booking Holdings, which has a market capitalization of more than $84 billion, was among the only remaining large, publicly held companies left in the project.Facebook Chief Executive Officer Mark Zuckerberg plans to testify next week at the House Financial Services Committee on Libra, among other topics.Representatives for the Libra Association didn’t immediately respond to a request for comment.\--With assistance from Kurt Wagner.To contact the reporters on this story: Joe Light in Washington at jlight8@bloomberg.net;Olivia Carville in New York at ocarville1@bloomberg.netTo contact the editors responsible for this story: Sara Forden at sforden@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Hedge Funds Have Never Been This Bullish On Mercadolibre Inc (MELI)
    Insider Monkey

    Hedge Funds Have Never Been This Bullish On Mercadolibre Inc (MELI)

    Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 10 percentage points since the end of the third quarter of 2018 as investors first worried over the possible ramifications of rising interest rates and the escalation of the trade war with China. The hedge funds and institutional investors we track […]

  • What Did MercadoLibre, Inc.'s (NASDAQ:MELI) CEO Take Home Last Year?
    Simply Wall St.

    What Did MercadoLibre, Inc.'s (NASDAQ:MELI) CEO Take Home Last Year?

    Marcos Eduardo Galperín became the CEO of MercadoLibre, Inc. (NASDAQ:MELI) in 1999. This report will, first, examine...

  • PayPal Writes Down $228 Million on Investments After Uber
    Bloomberg

    PayPal Writes Down $228 Million on Investments After Uber

    (Bloomberg) -- PayPal Holdings Inc. will report a $228 million loss on investments before taxes in the third quarter, driven in large part by a bad bet on Uber Technologies Inc. just before it went public.The San Jose, California-based payments company said the investment in Uber, for $500 million at the initial public offering price, had declined 34%. Another investment, in Latin American online retailer MercadoLibre Inc., had declined 10%, PayPal said.PayPal’s stake in the world’s largest ride-hailing business was tied to what the companies described as a closer collaboration on payments technology. Uber is the most prominent app to use PayPal’s nascent Pay With Venmo feature. But Uber’s stock has under-performed due to a combination of slowing growth and accelerated losses.A PayPal spokeswoman said the company’s guidance doesn’t incorporate expectations for stock price performance of their investments during the quarter given the “inherent difficulty” in predicting market fluctuations. PayPal said its investments have still generated unrealized gains for the company this year, due to better performance in earlier quarters.Following the report, Mark Palmer, an analyst at BTIG, said he now expects earnings per share of 54 cents for the third quarter, down from an earlier projection of 69 cents. PayPal reports earnings on Oct. 23. The stock was up less than 1% to $99.93 at 11:22 a.m. in New York.(Updates with shares in last paragraph. A previous version of this story was corrected to show company has unrealized gains on investments not revenue.)To contact the reporter on this story: Julie Verhage in New York at jverhage2@bloomberg.netTo contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • PayPal discloses $228M in losses on strategic investments in Uber, MercadoLibre
    American City Business Journals

    PayPal discloses $228M in losses on strategic investments in Uber, MercadoLibre

    “Given the inherent difficulty in predicting equity market fluctuations, when we provide quarterly guidance we cannot estimate the impact of our investments in MercadoLibre and Uber on our results,” PayPal spokeswoman Tiffany Peng told the Silicon Valley Business Journal in an email.

  • Amazon Plans $800 Million Data Center in Argentina
    Bloomberg

    Amazon Plans $800 Million Data Center in Argentina

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Amazon.com Inc.’s cloud division plans to build a regional data center in a free-trade zone in Argentina, according to people familiar with the matter.The Seattle-based company is preparing to invest about $800 million in the project over 10 years and will reap considerable tax benefits by locating the data center in the Bahia Blanca-Coronel Rosales districts of the province of Buenos Aires, said the people, who asked not to be identified because they’re not authorized to speak publicly.Amazon’s decision to put part of its cloud infrastructure in South America’s second-largest economy is a big win for the Argentine government, which is keen to diversify the economy into digital services, nanotechnology, aerospace and more. Earlier this year, the national congress unanimously passed a law creating incentives for tech companies to set up shop there -- a major achievement in an election year that has polarized society.Amazon, like any company benefiting from the new Knowledge Economy Law, will receive export tax breaks, an income tax reduction from 35% to 15% and will effectively pay lower labor costs. Moreover, by locating in the free-trade zone, Amazon will pay no national or provincial taxes on energy consumption, a generous benefit for a data center.Amazon, through a spokeswoman, declined to comment. The Argentina project isn’t final and could still be changed, one of the people said.Amazon Web Services, the company’s most profitable business, has been expanding its infrastructure around the globe to maintain an edge on rivals like Microsoft Corp. and Alphabet Inc.’s Google. Sales of cloud-computing services and software are expected to total $214.3 billion in 2019, up 17.5% from a year earlier, according to Gartner.Proximity to an Amazon data center helps companies reduce costs and improve data speeds compared with having to rely on sites outside the country. Argentina is home to several online outfits, including its largest company, e-commerce retailer MercadoLibre Inc., which uses AWS to host its platforms.\--With assistance from Matt Day.To contact the reporters on this story: Jorgelina do Rosario in Buenos Aires at jdorosario@bloomberg.net;Spencer Soper in Seattle at ssoper@bloomberg.netTo contact the editors responsible for this story: Carolina Millan at cmillanronch@bloomberg.net, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • ETF Trends

    Argentina ETF’s Top Holding Can Weather Political Volatility

    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.

  • Barrons.com

    MercadoLibre, the eBay of Latin America, Can Weather Argentina’s Economy, Analyst Says

    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.