QUOTE AND NEWS
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.
Benzinga  Jul 16  Comment 
Below are the top catalog & mail order houses stocks on the NASDAQ in terms of earnings per share. The trailing-twelve-month earnings per share at Overstock.com (NASDAQ: OSTK) is $3.49. Overstock.com's ROE for the same period is 99.60%. The...
Market Intelligence Center  Jul 9  Comment 
After closing Tuesday at $90.26, Mercadolibre, Inc. (MELI) presents an attractive opportunity to get a 7.97% return in just 73 days, which is an annualized return of 39.83% (for comparison purposes only). To enter this trade, sell one Sep. '14...
Motley Fool  Jul 7  Comment 
If you're one of the many investors who are eagerly waiting for the Alibaba IPO, you may want to consider other high-growth e-commerce companies in emerging markets. E-Commerce China Dangdang, MercadoLibre, and Vipshop may not be as popular as...
newratings.com  Jun 25  Comment 
BUENOS AIRES (dpa-AFX) - Online commerce platform MercadoLibre, Inc. (MELI) announced the pricing of $300 million aggregate principal amount of 2.25 percent Convertible Senior Notes due 2019. The company has granted the initial purchasers a...
StreetInsider.com  Jun 23  Comment 
Giga-Tronics, Inc. (NASDAQ: GIGA) 10.2% LOWER; reported Q4 EPS of ($0.25), versus ($0.31) reported last year. Revenue for the quarter came in at $2.9 billion, versus $2.8 million reported last year. Zhaopin Ltd. (NASDAQ: ZPIN) 4.4% HIGHER ;...
Motley Fool  Jun 22  Comment 
As MercadoLibre deals with its own regional headaches, eBay takes aim at Mercadolibre's Latin American dominance. Here's why it's still a buy.
SeekingAlpha  Jun 20  Comment 
By Sramana Mitra: According to an eMarketer research, business-to-consumer e-commerce sales in Latin America are projected to grow 20% in 2014 to $57.69 billion from $48.14 billion last year. eMarketer projects Brazil to be the leading market in...




RELATED WIKI ARTICLES
 

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.

[1]

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]

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