Latest news with #MELI
Globe and Mail
10 hours ago
- Business
- Globe and Mail
Prediction: 2 Monster Growth Stocks Will Be Worth More Than Palantir Technologies by 2030
Palantir Technologies (NASDAQ: PLTR) stock has advanced 450% in the past year, and its $330 billion market value makes its one of the 30 most valuable public companies in the world. But I think AppLovin (NASDAQ: APP) and MercadoLibre (NASDAQ: MELI) can top that figure in four years or less. Here's what that would mean for shareholders: Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » AppLovin is worth $117 billion. The stock must increase 183% for its market value to hit $331 billion. MercadoLibre is worth $122 billion. The stock must increase 171% for its market value to hit $331 billion. Importantly, both stocks have topped those thresholds in the past. In the last three years, AppLovin and MercadoLibre shares advanced 925% and 275%, respectively. But these monster growth stocks can keep climbing higher. Here's why. AppLovin could top Palantir's current market value in three years AppLovin develops adtech software that helps developers market and monetize their applications across mobile and connected TV campaigns. Most advertising on its platform has traditionally focused on video games, but the company is attracting a broader variety of brands with its new e-commerce advertising product. AppLovin put a great deal of effort into building its Axon recommendation engine. It began acquiring game studios years ago to train the underlying machine learning models that optimize targeting, and the company has since released two major updates. The end result? Axon is superior to other campaign targeting engines as measured by return on ad spend, according to Morgan Stanley. AppLovin reported excellent first-quarter financial results. Total revenue increased 40% to $1.4 billion, as strong sales growth in the advertising segment offset a decline in the mobile games segment. Meanwhile, generally accepted accounting principles (GAAP) earnings climbed 149% to $1.67 per diluted share. And management guided for 69% advertising sales growth in the second quarter. Importantly, CEO Adam Foroughi recently discussed the success of its new e-commerce advertising product. He told analysts, "This opens up a massive opportunity, as there are over 10 million businesses who advertise online that could eventually use our platform profitably. By delivering incremental value, we position ourselves as an engine for growth." Wall Street expects AppLovin's earnings to increase at 49% annually over the next three to five years. That makes the current valuation of 62 times earnings look reasonable. Also, if the company maintains that pace for three years, its market value can hit $331 billion, while its price-to-earnings multiple falls to 54. AppLovin has carved out a strong presence in the adtech space due to its Axon recommendation engine. The company could surpass Palantir's current market value within three years, so patient investors should consider purchasing a small position in this monster growth stock today. MercadoLibre could top Palantir's current market value in four years MercadoLibre operates the largest online marketplace in Latin America. The company has consistently gained market share during the last three years, and that trend is expected to continue. One reason for that success is a network effect, whereby the platform becomes increasingly attractive to shoppers as more sellers list products, and increasingly attractive to sellers as more shoppers participate. MercadoLibre has reinforced and accelerated that network effect with adjacent solutions for fulfillment, advertising, financing, and payments. The company has built the fastest and most extensive delivery network in Latin America. It is the largest retail media advertiser in the region. And it owns the largest fintech platform in Argentina, Chile, and Mexico, and the second-largest in Brazil. MercadoLibre reported strong financial results in the first quarter. Revenue jumped 37% to $5.9 billion on especially strong sales growth in the fintech segment, which itself was due to adoption of credit cards, financing, and asset management products. Meanwhile, profit margin improved modestly, and GAAP net income increased 44% to $9.74 per diluted share. Wall Street estimates MercadoLibre's earnings will increase at 30% annually over the next three to five years. That makes the current valuation of 59 times earnings look reasonable. And if the company maintains that growth rate during the next four years, its market value can hit $331 billion, while its price-to-earnings multiple falls to 57. MercadoLibre enjoys a strong position in multiple growing markets, and the company could exceed what Palantir is worth today within four years. Regardless, patient investors should feel good about buying a few shares today. Should you invest $1,000 in AppLovin right now? Before you buy stock in AppLovin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
2 days ago
- Business
- Globe and Mail
MercadoLibre Outperforms Industry YTD: Buy, Sell or Hold the Stock?
MercadoLibre MELI shares have returned 40% in the year-to-date (YTD) period, outperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry's growth of 3.2% and 5%, respectively. The Latin American company is efficiently tapping into the underpenetrated market in the region, taking advantage of the changing ways people buy and sell. It is actively investing in its value proposition to make the online buying experience more attractive than offline, which led to brand preference scores reaching all-time highs in Brazil, Mexico, Argentina and Chile in the first quarter of 2025. Even in fintech, its monthly active users continue to rise. However, there are a few key headwinds that should caution investors for now, despite MELI's strong growth. Let's take a closer look at the factors that are both helping and hurting MercadoLibre to understand why the stock is a hold for now. MELI's YTD Price Performance MELI's Fintech User Base is Climbing MELI's fintech arm, Mercado Pago, has been playing a central role in driving overall platform growth. A key strength lies in its low-cost-to-serve model, which enables profitable growth even while offering users attractive yields on deposits. These rates often match or exceed local benchmarks and allow instant liquidity, encouraging users to bring in funds, which, in turn, increases engagement with other services across the ecosystem. These efforts have been especially effective in markets like Brazil, Mexico and Chile, where user growth has outpaced the overall average. As a result, Mercado Pago reached 64 million monthly active users in the first quarter of 2025, marking a 31% year-over-year increase. Fintech revenues for the quarter hit $1.49 billion, accounting for 34.4% of total revenues and growing 43% year over year. MELI's Logistics and Supermarket Strategy is Paying Off MercadoLibre has been strengthening its logistics network to support long-term e-commerce growth. In March, fulfillment penetration in Brazil surpassed 60% for the first time. Efficiency initiatives have helped reduce fulfillment costs year over year in local currency across Brazil, Mexico and Chile. This allows for continued investment in features like free shipping to boost purchase frequency. Meanwhile, the supermarket category is gaining traction. Improved navigation, repeat purchase options and targeted promotions led to a 65% year-over-year increase in items sold in the first quarter, making it MELI's fastest-growing category and driving broader user engagement. MELI's Earnings Estimate Revisions Show Downward Trend The Zacks Consensus Estimate for 2025 earnings is pegged at $47.75 per share, which has been revised downward by 0.35% over the past 30 days, indicating 26.69% year-over-year growth. The consensus mark for 2025 revenues is pegged at $27.35 billion, suggesting 31.66% year-over-year growth. MercadoLibre's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise of 22.59%. MELI Stock is Overvalued MELI is trading at a premium compared to the broader Zacks Internet – Commerce industry. As of the latest data, MELI's forward 12-month Price/Sales ratio hovers around 3.95X, above the industry's 1.98X. This suggests MELI is not a great pick for a value investor. The Value Score of D further reinforces an unattractive valuation for the stock at the moment. MELI's P/S F12M Ratio Depicts Premium Valuation Margin Pressure Hits MELI in Brazil and Mexico While MercadoLibre reported strong overall growth, margins in Brazil and Mexico have been under pressure. The company continued to invest heavily in logistics infrastructure and the expansion of its credit card business, both of which are critical to long-term strategy but are weighing on near-term profitability. In Brazil, additional cost pressure came from higher interest rates and currency depreciation. As a result, both countries saw their direct contribution margins decline by about 5 percentage points year over year in the first quarter. MELI Faces Intense Competition in the E-Commerce Space MercadoLibre is facing rising pressure from well-funded international giants expanding across Latin America. Amazon AMZN is ramping up its regional operations, bringing its logistics and brand power to the region. Walmart WMT, with more than 3,000 stores in Mexico alone, continues to rely on its vast brick-and-mortar presence to strengthen its position in the region. Meanwhile, AliExpress, backed by Alibaba BABA, draws price-sensitive shoppers with ultra-cheap goods and a broad product variety. Though MELI remains a dominant force in Latin American e-commerce, Amazon, Walmart, and Alibaba each pose serious competitive threats. If unchecked, they could erode MELI's pricing power, retention and long-term profitability. Shares of Walmart and Alibaba have risen 4.4% and 35.7%, respectively, in the year-to-date period, while Amazon has lost 2%. Here's Why You Should Hold MELI Stock for Now MercadoLibre remains a strong player in Latin America's e-commerce and fintech markets, with solid growth in active users and expanding logistics. Its investments financial services are clearly paying off. However, the company is also navigating short-term challenges, including rising margin pressure in key markets and intensifying competition from global giants. On top of that, valuation concerns and slight downward revisions in earnings estimates suggest the stock may not offer the best risk-reward balance at current levels. Given this mix, MELI is best kept as a hold for now. MELI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report MercadoLibre, Inc. (MELI): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
MercadoLibre (MELI) Dips More Than Broader Market: What You Should Know
MercadoLibre (MELI) closed the most recent trading day at $2,388.42, moving -2.7% from the previous trading session. This change lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.91%. Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 5.04% over the past month, outpacing the Retail-Wholesale sector's loss of 0% and lagging the S&P 500's gain of 1.44%. Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. The company is predicted to post an EPS of $12.01, indicating a 14.6% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.52 billion, reflecting a 28.57% rise from the equivalent quarter last year. For the full year, the Zacks Consensus Estimates project earnings of $47.75 per share and a revenue of $27.35 billion, demonstrating changes of +26.69% and +31.66%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. At present, MercadoLibre boasts a Zacks Rank of #3 (Hold). Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 51.41. Its industry sports an average Forward P/E of 24.95, so one might conclude that MercadoLibre is trading at a premium comparatively. We can also see that MELI currently has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.64 as trading concluded yesterday. The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 33% of over 250 industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Q1 Earnings Outperformers: MercadoLibre (NASDAQ:MELI) And The Rest Of The Online Marketplace Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at MercadoLibre (NASDAQ:MELI) and the best and worst performers in the online marketplace industry. Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition. The 13 online marketplace stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 2.2% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results. Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America. MercadoLibre reported revenues of $5.94 billion, up 37% year on year. This print exceeded analysts' expectations by 8.1%. Overall, it was a strong quarter for the company with a solid beat of analysts' EBITDA estimates and impressive growth in its users. The stock is up 8% since reporting and currently trades at $2,453. Read why we think that MercadoLibre is one of the best online marketplace stocks, our full report is free. Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics. eHealth reported revenues of $113.1 million, up 21.7% year on year, outperforming analysts' expectations by 13.4%. The business had an exceptional quarter with an impressive beat of analysts' EBITDA estimates and full-year EBITDA guidance exceeding analysts' expectations. eHealth pulled off the biggest analyst estimates beat among its peers. On a dimmer note, the company reported 1.16 million users, down 1.8% year on year. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.9% since reporting. It currently trades at $4.21. Is now the time to buy eHealth? Access our full analysis of the earnings results here, it's free. Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods. The RealReal reported revenues of $160 million, up 11.3% year on year, in line with analysts' expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts' expectations. The RealReal delivered the weakest full-year guidance update in the group. The company reported 985,000 users, up 157% year on year. As expected, the stock is down 29.2% since the results and currently trades at $5.17. Read our full analysis of The RealReal's results here. Originally started as a joint venture between several media companies including The Washington Post and The New York Times, (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers. reported revenues of $179 million, flat year on year. This print lagged analysts' expectations by 0.6%. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts' EBITDA estimates but disappointing growth in its buyers. The company reported 19,250 active buyers, down 0.7% year on year. The stock is down 7.5% since reporting and currently trades at $10.47. Read our full, actionable report on here, it's free. Originally featuring a library that included many of founder Jon Oringer's photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content. Shutterstock reported revenues of $242.6 million, up 13.2% year on year. This number missed analysts' expectations by 4.1%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts' number of paid downloads estimates but a miss of analysts' EBITDA estimates. Shutterstock had the weakest performance against analyst estimates among its peers. The company reported 120.9 million service requests, up 245% year on year. The stock is up 11.4% since reporting and currently trades at $18.35. Read our full, actionable report on Shutterstock here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Why MercadoLibre (MELI) is a Top Growth Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics. Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time. Buenos Aires, Argentina based MercadoLibre, Inc. is one of the largest e-commerce platforms in South America. The company is a market leader in e-commerce in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico, and Uruguay based on unique visitors and page views. MELI boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 26.7% year-over-year for 2025, while Wall Street anticipates its top line to improve by 31.7%. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.62 to $47.75 per share. MELI boasts an average earnings surprise of 22.6%. On a historic basis, MercadoLibre has generated cash flow growth of 937.8%, and is expected to report cash flow expansion of 67.3% this year. With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, MELI should be on investors' short lists. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
