MELI - MercadoLibre, Inc.
| Previous Close | 586.69 |
| Open | 589.00 |
| Bid | 0.00 x 800 |
| Ask | 619.38 x 1000 |
| Day's Range | 570.00 - 589.00 |
| 52 Week Range | 257.52 - 698.98 |
| Volume | 462,490 |
| Avg. Volume | 461,859 |
| Market Cap | 29B |
| Beta (3Y Monthly) | 1.61 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -2.69 |
| Earnings Date | Feb 24, 2020 - Feb 28, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | 2017-12-28 |
| 1y Target Est | 647.85 |
- Bloomberg
Goldman Makes Biggest Mexico Fintech Bet With MercadoLibre Loan
(Bloomberg) -- Goldman Sachs Group Inc. agreed to lend $125 million to Mercado Credito, the bank’s third loan to a Latin American fintech this year and the biggest ever in Mexico.The borrower, a unit of MercadoLibre Inc., plans to use the money to triple in about one year its $100 million working-capital portfolio provided to small and midsize companies in Mexico, Martin de los Santos, a senior vice president, said in a phone interview.The goal is to “democratize financial services,” by lending to firms that don’t have access to other financing, he said.MercadoLibre dominates Latin American e-commerce with an almost 25% market share and 40 million unique monthly visitors, Julie Chariell, a senior analyst at Bloomberg Intelligence, said in a November report. It’s based in Argentina, but almost two-thirds of its $603 million in third-quarter net revenue came from Brazil, according to the company’s financial statements. Its market value more than doubled this year to $29 billion.The Mercado Credito unit was launched in 2016 to provide credit to clients of its parent company and to customers using its online payment platform, MercadoPago, in Brazil, Argentina and Mexico. The company, which develops proprietary credit-risk models, has granted more than $610 million in working-capital credit lines to more than 270,000 companies in Latin America. It also offered around $200 million in consumer loans.The Goldman loan won’t be used to finance lending in Brazil, where Mercado Credito raised 245 million reais ($58 million) from investors including Inter-American Development Bank, or in Argentina, where the firm finances itself in the capital markets, Santos said. Before the Goldman deal, Mercado Credito was using its own capital to finance loans to firms in Mexico.“We wanted not only Goldman’s capital but also the experience the bank has on this type of transactions throughout Latin American,” Santos said. “I hope to work with the bank in the future to finance other portfolios, including consumer operations in Mexico and other markets.”Latin American retail e-commerce is expected to increase 13% to 16% annually over the next five years, with penetration at just 2.4% of total retail sales in the region, Chariell said in a June report.Mercado Credito has a unique way of getting capital flowing to businesses that have traditionally lacked access to financing, according to Santiago Rubin, a managing director at Goldman Sachs who’s head of technology, media and telecommunications for Latin America.But higher delinquency rates are a concern for analysts. “Credit quality deteriorated significantly in Brazil,” analysts at Banco Itau BBA SA said in a Nov. 1 report that pinned part of the blame on consumer credit and lending to merchants that use mobile-card acceptance machines.Santos said he is not preoccupied. The lending portfolio to consumers in Brazil is less than 8% of the total, and brand new, having started only 9 months ago, he said.The Goldman deal follows a $750 million investment by PayPal Holdings Inc. and $100 million by Dragoneer Investment Group that were part of an $1.85 billion equity offering Mercado Libre did earlier this year.Goldman’s loan is being done through the New York-based company’s structured finance, investment and lending business, headed by Ram Sundaram, the same one that in August provided a secured credit facility of as much as $100 million to Mexican fintech Konfio Ltd. Also this year, the special-situations group agreed to provide Mexico’s Credijusto Inc. with a $100 million facility.The bank’s special-situations group also did a loan to Brazilian credit-card lender Nu Pagamentos SA, widely known as Nubank. The loan was of 200 million reais in 2016, and in August 2017 was expanded to 455 million reais in a deal with Fortress Investment Group. The entire loan has been repaid.“We look forward to keep supporting MercadoLibre across the region as their lending footprint grows,” Sundaram, who also oversees the emerging markets and commodities business at Goldman Sachs, said in a statement.\--With assistance from Felipe Marques and Vinícius Andrade.To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Steve Dickson, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Insider Monkey
Hedge Funds Are Souring On Mercadolibre Inc (MELI)
We are still in an overall bull market and many stocks that smart money investors were piling into surged through November 22nd. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 52% and 49% respectively. Hedge funds' top 3 stock picks returned 39.1% this year and beat the S&P […]
- Thomson Reuters StreetEvents
Edited Transcript of MELI earnings conference call or presentation 31-Oct-19 8:30pm GMT
Q3 2019 Mercadolibre Inc Earnings Call
- IPO-Edge.com
Mohawk Group CEO Explains What’s Wrong with Retail
Yaniv Sarig, President and CEO of Mohawk Group Holdings, Inc. By Yaniv Sarig For any retail executive, a simple glance at sales trend reports can cause massive handwringing about the state of the retail industry. And for sure, there is reason for some of this doom-and-gloom. On the surface, the statistics can be daunting. In […]
- TipRanks
3 Monster Growth Stocks That Can Outperform in 2020
Which stocks are investors thankful for? The answer is clear: massive growth stocks. This is because these names demonstrate the potential for plenty of share price growth. We don’t just mean in the short-term. No, we’re talking over the course of the next few years. However, no one said finding these stocks with stellar growth prospects was going to be easy. At the end of the day, any investment is accompanied by some degree of risk, with no sure-fire way to predict which names will come out on top. So what’s an investor supposed to do?One option is to take advantage of TipRanks.com. The platform’s wealth of market data arms investors with the information they need to see the bigger picture. During our own search, we used the platform to zero in on 3 stocks primed to outperform the market in the coming year and beyond.Let’s dive right in. Mercadolibre, Inc. (MELI)Mercadolibre was developed as an online marketplace for consumers in Latin American countries, with it now expanding its services to cater to the region’s under-banked community through its digital payments system, Mercado Pago. Given that $13.4 billion worth of goods are sold on the marketplace as well as its 93% year-to-date climb, it’s no wonder Wall Street is intrigued. After its third quarter earnings release, its growth story sounds even more promising. In terms of total payment volume (TPV), MELI flew past the $7.2 billion consensus estimate, with the figure coming in at $7.6 billion. In local currency, this amounts to a 190% increase for off-platform and a whopping 300% gain for digital wallet. On top of this, the company was able to add 1.6 million active payers. That being said, the postal strike in Brazil did take a toll on gross merchandise volume (GMV) by $35 million. In spite of this obstacle, GMV still gained 37%, up from 33% in Q2. While some expressed concern regarding its realized EBITDA margins of -9%, J.P. Morgan analyst Andre Baggio notes that this is a result of MELI’s investment back into the business. “Most of the year-over-year pressure came from a 9pp increase in branding initiatives inside marketing expenditure, which is not used to boost short-term results but rather to help build a stronger brand for the future. On top of marketing, MELI is also investing more in fulfillment and credit,” he commented.The four-star analyst added, “We see MELI as very well positioned in the Latin American e-commerce and Fintech environments.” To this end, he kept his Overweight rating while reducing the price target from $750 to $700. Even at this lower target, Baggio thinks shares could surge 24% over the next twelve months. (To watch Baggio’s track record, click here)Similarly, other Wall Street analysts have been impressed by MELI. It earns a ‘Strong Buy’ consensus rating thanks to the 7 Buys and 1 Hold assigned in the last three months. In addition, the average price target of $692 implies 22% upside potential. (See Mercadolibre stock analysis on TipRanks) JD.com, Inc. (JD)The Chinese e-commerce company just posted an earnings beat of monster proportions. As a result, several members of the Street believe that now is the time to add JD (up 53% year-to-date) to your shopping cart.To kick off its third quarter earnings announcement, JD reported that revenue had grown at its fastest rate since Q2 2018, up 29% year-over-year. Not to mention even with the intense competition it faces in the space, annual active users increased by 13 million, with the new total landing at 334 million, and monthly active users were up 36%. Credit Suisse’s Tina Long argues that JD’s focus on gaining users from “lower-tier” cities could drive this figure to further accelerate. She cites the fact that “(1) 70% of new users are from lower-tier cities; (2) Order and GMV growth in lower-tier cities was the highest in the past six quarters; (3) It performed particularly strongly in large ticket sized items like electronics & home appliances. Avg. ticket size in lower-tier cities was Rmb200, higher than peers” to back up this conclusion. As a result, she maintained her bullish call and bumped up the price target from $41.40 to $43.50, suggesting 36% upside potential. (To watch Long’s track record, click here)Meanwhile, Alex Yao of J.P. Morgan reminds investors that the year-over-year decline in GPM and weak net margin guidance don’t impact the strong profit growth outlook. “We suggest investors focus on profit growth: 1) the GPM YoY decline in 3Q19 didn’t affect the solid OPM YoY improvement (2.2% from 0.6%); 2) higher revenue growth can also lead to solid profit growth even if JD sacrifices discretionary profit; and 3) acquiring more new buyers is positive for longer-term upside,” he explained. This prompted the four-star analyst to stay with the bulls, boosting the price target by $1 to $43. (To watch Yao’s track record, click here)When it comes to the rest of the Street, the consensus is split right down the middle. 3 Buys and 3 Holds add up to a ‘Moderate Buy’. Based on the $39 average price target, the potential twelve-month gain is 23%. (See JD.com stock analysis on TipRanks) Yandex N.V. (YNDX)Yandex is a Russian internet and technology company that operates a popular search engine. On the heels of its announcement that it will be updating its corporate governance, some analysts are standing firmly behind YNDX, stating that the company’s 48% year-to-date growth is just the beginning. In order to align its corporate governance with country interests, the Priority Share, which is currently held by Sberbank, will get more rights and will be held by the Public Interest Foundation (PIF). The PIF is set to be governed by a board of 11 directors, including members from the five top Russian universities, three non-governmental institutions and the company’s three representatives. These new rights include the option to prevent a single entity from accumulating economic or voting interests in Yandex of 10% or more, down from the current 25% level, to make binding nominations for two members of the board, to temporarily replace the General Director of the Russian subsidiary and appoint the Interim General Director in special cases and Class A shareholders will be assigned with additional rights, including a requirement to get an approval from them for certain material transactions. Founder and CEO Arkady Volozh will also see his stake be moved to a family trust, with shares no longer being converted into Class A upon his death.UBS analyst Ulyana Lenvalskaya sees the changes as a good thing for YNDX shares. “We think the proposed changes i) address the single-man risk/outline a clear succession plan and ii) create a new layer of Russian IP and data protection; as a result recently intensified regulatory pressure on Yandex is likely to diminish, we believe,” she noted. Bearing this in mind, she reiterated her Buy rating and $54.30 price target. This conveys her confidence in YNDX’s ability to rise 34% in the next twelve months. (To watch Lenvalskaya’s track record, click here) Looking at the consensus breakdown, 2 Buys published in the last three months compared to no Holds or Sells amount to a ‘Moderate Buy’. Its $52 average price target also implies 29% upside potential. (See Yandex stock analysis on TipRanks)
- 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.
- 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.
- 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?
- 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.
- GlobeNewswire
MercadoLibre, Inc. Reports Third Quarter 2019 Financial Results
Net Revenues of $603.0 million, up 90.5% YoY on an FX neutral basis$7.6 billion Total Payment Volume, up 94.5% YoY on an FX neutral basis$3.6 billion Gross Merchandise Volume,.
- 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.
- 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 […]
- GlobeNewswire
MercadoLibre, Inc. to Report Third Quarter 2019 Financial Results
MercadoLibre, Inc. (MELI) (http://www.mercadolibre.com) intends to release financial results for its third fiscal quarter ended September 30th, 2019 on October 31th, 2019 after the close of the day's trading. The Company will host a conference call and audio webcast on October 31st, at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (877) 303-7209 / (970) 315-0420 (Conference ID 1183947) and requesting inclusion in the call for Mercado Libre.
- 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.
- 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.
- PR Newswire
PayPal Reports Third Quarter 2019 Results
Revenue of $4.38 billion , growing 19% GAAP EPS of $0.39 ; non-GAAP EPS of $0.61 ; includes net unrealized loss of $0.15 per share from strategic investments 9.8 million net new active accounts added, ...
- 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.
- 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.
- 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.
