Benzinga  Oct 9  Comment 
In a report published Thursday, Credit Suisse analyst Stephen Ju reiterated a Neutral rating on MercadoLibre Inc (NASDAQ: MELI), and raised the price target from $90.00 to $101.00. In the report, Credit Suisse noted, “Investor focus has...
Market Intelligence Center  Sep 26  Comment 
Mercadolibre, Inc. (MELI) is a good candidate for a covered call at the $110.00 level. The Nov. '14 call at that price should fetch a credit of about $7.30, which means the entire position has a net debit of about $103.32. This trade has 5.26%...
SeekingAlpha  Sep 16  Comment 
By Sramana Mitra: An eMarketer report released earlier this year estimates business-to-consumer e-commerce sales in Latin America will grow 20% this year, from $48.14 billion to $57.69 billion. The market is expected to grow to $74.5 billion by...
TheStreet.com  Aug 8  Comment 
NEW YORK (TheStreet) -- Mercadolibre shares are up 16.5% to $107.74 on Friday after reporting second quarter EPS of 58 cents per diluted shares, 2 cents better than analysts were expecting.The Argentine-based e-commerce company reported revenue...
Benzinga  Aug 8  Comment 
Tekmira Pharmaceuticals (NASDAQ: TKMR) shares moved up 17.52% to $16.77. The volume of Tekmira Pharmaceuticals shares traded was 2887% higher than normal. Tekmira Pharma said a Food and Drug Administration action may enable the use of the...
SeekingAlpha  Aug 8  Comment 
MercadoLibre, Inc. (NASDAQ:MELI) Q2 2014 Results Earnings Conference Call August 7, 2014 4:30 PM ET Executives Martin de los Santos - Head, Investor Relations Pedro Arnt - Chief Financial Officer Osvaldo Gimenez - Executive Vice...
newratings.com  Aug 7  Comment 
WASHINGTON (dpa-AFX) - Mercadolibre Inc (MELI), the Latin American e-commerce technology company, Thursday reported second-quarter net loss of $25.6 million or $0.58 per share, hurt by one-time charges. This compares with net earnings of $30...
Motley Fool  Jul 22  Comment 
MercadoLibre is down by 15% in the last six months due to fears over economic uncertainty in Latin America and the competitive threat from Amazon and eBay. However, the company is still firing on all cylinders, and it has enough competitive...
Market Intelligence Center  Jul 18  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithms on Mercadolibre, Inc. (MELI) could yield about 6.14% (35.04% annualized, for comparison purposes only) in 64 days. Pair a long position in the stock with the Sep. '14...
Motley Fool  Jul 17  Comment 
This wonderful business uses network effects and an emerging market to grow its platform.


MercadoLibre (Nasdaq:MELI) is the largest online trading platform in Latin America. They are market leaders in e-commerce in each of Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela, based on unique visitors and page views during 2007. Additionally, they have recently launched online trading platforms in Costa Rica, the Dominican Republic and Panama. With a market of over 550 million people and a region with one of the world’s fastest-growing Internet penetration rates, they provide buyers and sellers a robust online trading environment that fosters the development of a large and growing e-commerce community. They offer a technological and commercial solution that addresses the distinctive cultural and geographic challenges of operating an online trading platform in Latin America.

Company Overview

Stock = MELI The objective of the firm is to provide a technical launching pad which may allow markets to become ever more efficient in Latin America. Mercado Libre began by pioneering online commerce in the Latin American region under the idea that regional markets were fragmented, lacking breath and asymmetrically informed.

Business Financials

  • Due to a high volume of legal actions against the company, as of the end of 2009 the company holds 1,071, 757 USD in reserve to deal with those actions in which it considers there is a probable loss (316).
  • In 2008 the company initiated a stock repurchase plan that totaled 2,590,742 USD and was further continued into 2009 as the company wrote put option on its stock. The options were not exercised at the expiration date allowing the company to recognize a gain of 185,000 in the first half of 2009 and 302,997 in the second half.
  • Growth in 3Q09 was derived from a 34% increase in the gross merchandise volume transacted through the Mercado Libre marketplace which was partially offset by a decrease in the take rate. A measure defined as Marketplace revenues as a percentage of gross merchandise volume. This decrease was to due to increased penetration in smaller countries were the take rate is naturally smaller, a higher growth in final value listings, and Latin American currency devaluation.
  • For 12.1MM in cash and cash equivalents Mercado Libre acquired a regional competitor DeRemate.com with operations in Mexico, Brazil, Colombia, Ecuador, Peru, Uruguay and Venezuela.
  • In 2007 the company launched its initial public offering (IPO) raising 49,573,239 in cash after the sale of 3MM common stock shares.


Business Segments

The business segments of the company are divided by the company in which they hold their online commerce platform in.

  • Brazil (25.857% of Net Contribution)
  • Argentina (17.539% of Net Contribution)
  • Mexico (6.343% of Net Contribution)
  • Venezuela (16.998% of Net Contribution)
  • Other countries (6.224% of Net Contribution)

Though the company also recognizes two distinct services it provides: the MercadoLibre marketplace and the MercadoPago online payment solutions. The first is a fully automated online commerce platform that allows individuals or corporations to sell items in a variety of sale formats. The platform further provides a classifieds service for large parcel items like motor vehicles and real estate. The latter is an integrated online payment system that provides safe and efficient transactions.[2]

Revenue Drivers

Revenue drivers in the Mercado Libre Marketplace are: listing fees, optional features fees, final value fees, and online advertising fees. Revenues from the online payment solutions come from fees charged to the buyers and sellers.

Trends and Forces

Population and Internet

With a population of 550MM and one of the highest internet penetration rates in the world, online companies in Latin America face high expected growth rates. [3]

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki