QUOTE AND NEWS
Market Intelligence Center  May 18  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center  are highlighting two trades on Mercadolibre, Inc. (MELI) today after it closed at $146.46 on Friday. For more conservative...
Market Intelligence Center  May 14  Comment 
Wednesday’s trading in Mercadolibre, Inc. (MELI) gives options traders an opportunity for a 16.28% return. By selling the Sep. '15 $140.00 call and buying the Jan. '16 call at the $100.00 level for a net debit of $34.40, traders will book a...
Market Intelligence Center  May 13  Comment 
Mercadolibre, Inc. (MELI) presents a trading opportunity that offers a 7.67% return in just 128 days. A covered call on Mercadolibre at the $145.00 level expiring on Sep. '15 offers an assigned return rate of 7.67% or 21.87% annualized. This...
Benzinga  May 12  Comment 
In a report published Tuesday, analysts at Stifel downgraded Mercadolibre Inc (NASDAQ: MELI) from Buy to Hold. The analysts expressed their concerns regarding the stock valuation and tough comps associated with the company's recent...
Benzinga  May 12  Comment 
Below are the top catalog & mail order houses stocks on the NASDAQ in terms of return on investment. The trailing-twelve-month return on investment at Mercadolibre Inc (NASDAQ: MELI) is 11.10 percent. Mercadolibre's EPS for the same period is...
Market Intelligence Center  May 7  Comment 
Mercadolibre, Inc. (MELI) traded between $146.93 and $150.46 before closing at $148.51 Wednesday and presents some attractive trading opportunities today. MarketIntelligenceCenter.com’s algorithms have picked a Sep. '15 $145.00 covered call for...
Motley Fool  May 6  Comment 
The Latin American e-commerce giant suffered from the devalued bolivar but posted solid growth.
Benzinga  Apr 28  Comment 
Analysts at Credit Suisse upgraded Mercadolibre Inc (NASDAQ: MELI) from Neutral to Outperform. The price target for Mercadolibre has been raised from $136.00 to $191.00. Mercadolibre shares have gained 55.69 percent over the past 52 weeks,...
Benzinga  Apr 28  Comment 




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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