MercadoLibre Soars on Booming Latin America E-Commerce Growth
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MercadoLibre is the largest e-commerce and fintech company in Latin America, with leading positions across online commerce, payments, logistics, and digital advertising.
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MercadoLibre reported very strong Q3 results, with revenue up 40% year-over-year and net income up 178%. Profit margins also expanded.
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The company is investing in new initiatives like digital entertainment and loyalty programs to engage consumers, similar to Amazon's playbook.
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Analysts forecast MercadoLibre's core business lines to keep growing at double-digit rates thanks to strong tailwinds in Latin American e-commerce, payments, and digital ads.
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At around 6 times expected sales, MercadoLibre's valuation looks reasonable relative to its growth prospects, which could allow the stock to multiply over the next decade.