Latest news with #MELI
Yahoo
5 days ago
- Business
- Yahoo
Mercado Libre Launches New Episode of CFO Perspectives, Featuring Martin de los Santos Reflecting on Q1'2025 Highlights
Montevideo, May 29, 2025 (GLOBE NEWSWIRE) -- Mercado Libre (NASDAQ: MELI), the leading e-commerce and fintech platform in Latin America, today launches a new episode within the Inside Mercado Libre podcast: CFO Perspectives. Following our earnings report this quarter, CFO Martin de los Santos joins host Richard Cathcart, Investor Relations Officer, to reflect on Mercado Libre's performance and provide a look ahead. In the second episode of CFO Perspectives: Reflections on Q1 Results, now live on Spotify, Martin de los Santos and Richard Cathcart discuss key investor questions following Mercado Libre's Q1 2025 results, covering Argentina, e-commerce competition, GMV growth in Brazil and Mexico and the growth and health of our credit business. As de los Santos highlights, ' We had a great start of the year, which is a continuation of what happened in 2024. The first quarter of 2025 presented strong top line growth, and impressive operational metrics: number of buyers grew by 25%, year on year, reaching 67 million in Q1. More impressive than that is the fact that the number of new buyers is growing very rapidly even after 25 years of history of MELI. On the Fintech side of the business Monthly Active Users grew at 31% year on year. This is actually the sixth consecutive quarter with growth above 30% year on year, surpassing 64 million users.' Listen to the latest episode CFO Perspectives: Reflections on Q1 Results on Spotify. Previous episodes "Acquiring with Paula Arregui, Fintech Acquiring Senior Vice President', "Marcos Galperin on MELI's Culture,' 'Strategy and Growth Opportunities with Leandro Cuccioli', 'Advertising with Sean Summers', 'Logistics with Agustin Costa', and 'Artificial Intelligence with Sebastian Barrios', can be accessed here. About Mercado Libre Founded in 1999, MercadoLibre, Inc (NASDAQ: MELI) is the leading company in e-commerce and financial technology in Latin America, with operations in 18 countries. It offers a complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline. Mercado Libre looks to facilitate access to commerce and financial services in Latin America, a market that offers great opportunities and high growth potential. It uses world-class technology to create intuitive solutions tailored to the local culture to transform the lives of millions of people in the region. More information at CONTACT: Janelle Laignelet (She / Her) jlaignelet@ 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
5 days ago
- Business
- Yahoo
Mercado Libre Launches New Episode of CFO Perspectives, Featuring Martin de los Santos Reflecting on Q1'2025 Highlights
Montevideo, May 29, 2025 (GLOBE NEWSWIRE) -- Mercado Libre (NASDAQ: MELI), the leading e-commerce and fintech platform in Latin America, today launches a new episode within the Inside Mercado Libre podcast: CFO Perspectives. Following our earnings report this quarter, CFO Martin de los Santos joins host Richard Cathcart, Investor Relations Officer, to reflect on Mercado Libre's performance and provide a look ahead. In the second episode of CFO Perspectives: Reflections on Q1 Results, now live on Spotify, Martin de los Santos and Richard Cathcart discuss key investor questions following Mercado Libre's Q1 2025 results, covering Argentina, e-commerce competition, GMV growth in Brazil and Mexico and the growth and health of our credit business. As de los Santos highlights, ' We had a great start of the year, which is a continuation of what happened in 2024. The first quarter of 2025 presented strong top line growth, and impressive operational metrics: number of buyers grew by 25%, year on year, reaching 67 million in Q1. More impressive than that is the fact that the number of new buyers is growing very rapidly even after 25 years of history of MELI. On the Fintech side of the business Monthly Active Users grew at 31% year on year. This is actually the sixth consecutive quarter with growth above 30% year on year, surpassing 64 million users.' Listen to the latest episode CFO Perspectives: Reflections on Q1 Results on Spotify. Previous episodes "Acquiring with Paula Arregui, Fintech Acquiring Senior Vice President', "Marcos Galperin on MELI's Culture,' 'Strategy and Growth Opportunities with Leandro Cuccioli', 'Advertising with Sean Summers', 'Logistics with Agustin Costa', and 'Artificial Intelligence with Sebastian Barrios', can be accessed here. About Mercado Libre Founded in 1999, MercadoLibre, Inc (NASDAQ: MELI) is the leading company in e-commerce and financial technology in Latin America, with operations in 18 countries. It offers a complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline. Mercado Libre looks to facilitate access to commerce and financial services in Latin America, a market that offers great opportunities and high growth potential. It uses world-class technology to create intuitive solutions tailored to the local culture to transform the lives of millions of people in the region. More information at CONTACT: Janelle Laignelet (She / Her) jlaignelet@
Globe and Mail
26-05-2025
- Business
- Globe and Mail
MercadoLibre Rises 47% YTD: Should You Buy, Sell or Hold the Stock?
MercadoLibre MELI shares have returned 47.4% in the year-to-date (YTD) period, outperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry's growth of 0.5% and 0.4%, respectively. The stock has also outperformed the S&P 500 index's decline of 1.9% YTD. MELI shares have been riding on its dominant presence in Latin America and a diversified business model across e-commerce and fintech. Its performance has also been fueled by two strong earnings reports in a row, which came out to be better than expected. Total revenues in the first quarter of 2025 were driven by accelerating commerce and fintech revenues, which grew 32.3% and 43.3% year over year, respectively. The marketplace's Unique Active Buyers grew 25% and fintech's Monthly Active Users rose 31%. Despite reporting such a strong quarter, the company has been facing some headwinds that should caution investors. Let's delve deeper to understand the factors helping and hurting MELI to determine how investors should play the stock. MELI's YTD Price Return Performance MELI Expands Its Advertising Inventory MercadoLibre has expanded its advertising reach with the launch of the Mercado Play app on smart TVs across Latin America at the end of the first quarter of 2025. The app, now available for download on over 70 million smart TVs, offers users access to more than 15,000 hours of free content. With fewer than half of the region's population subscribed to paid streaming services, MercadoLibre sees this as a significant opportunity to engage new audiences. The initiative is positioned as a triple-win. It is benefiting consumers through free content, content studios through broader distribution, and Mercado Ads through enhanced ad inventory and reach. MELI's Earnings Estimate Revisions Show Upward Trend The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $11.70 per share, which has been revised upward by 12.28% over the past 30 days, indicating 11.64% year-over-year growth. The consensus mark for second-quarter 2025 revenues is pegged at $6.37 billion, suggesting 25.52% 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 being 22.59%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) MELI Stock is Overvalued In terms of valuation, 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 4.32, above the industry's 2, reflecting investors' high growth expectations. 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 MELI Faces Credit Business Risks In the first quarter of 2025, MercadoLibre reported a sharp decline in its credit portfolio's profitability, with Net Interest Margin After Losses (NIMAL) falling to 22.7% from 31.5% a year earlier. The company cited negative seasonality as the primary cause for the drop in terms of quarterly change, but the more troubling year-over-year compression reflects deeper structural issues in the business. A growing reliance on credit cards, which now make up 42% of the portfolio, up from 35% in the year-ago quarter, has weighed heavily on margins. These products generate lower returns than consumer loans, and the shift is dragging overall performance. Additionally, the company's move upmarket in both consumer and merchant lending, while reducing default risk, has further eroded yield. Argentina's share of the portfolio doubled over the year, but even with its relatively higher margins, it was only enough to partially offset the broader NIMAL deterioration. The results point to mounting pressure on MELI's credit business going forward. MELI Faces Intense Competition in the E-Commerce Space As global e-commerce continues to expand, MercadoLibre is encountering mounting pressure from well-capitalized international players aggressively targeting Latin America. Amazon AMZN is scaling its operations in the region, while Walmart WMT, already the largest brick-and-mortar retailer in Latin America with more than 3,000 stores in Mexico alone, leverages its extensive footprint to gain market share. Alibaba 's BABA AliExpress adds to the pressure by offering ultra-low-cost products, drawing in price-sensitive consumers across the continent. Despite its leading position in Latin America's digital commerce landscape, MercadoLibre faces a serious threat from these global giants. Armed with advanced logistics networks, cutting-edge technology, and deep financial resources, these competitors are well-positioned to reduce MELI's market share. Without proper countermeasures, the company risks losing ground, particularly in user retention and pricing power, placing additional strain on its long-term growth and profitability. Here's Why You Should Hold MELI Stock for Now MercadoLibre remains a dominant player in the Latin American e-commerce and fintech space, but growing headwinds warrant a cautious outlook. Intensifying competition from global players, coupled with structural pressure on its credit margins, poses real challenges to its growth trajectory. The recent decline in NIMAL and the stock's premium valuation further complicates the near-term investment case. While MELI's expanding user base and diversified ecosystem are long-term strengths, current risks around profitability and competitive positioning suggest that investors may be better off holding the stock until more clarity emerges. MELI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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
24-05-2025
- Business
- Yahoo
JPMorgan Lifts MercadoLibre (MELI) Price Target After Strong Q1 Report
On Thursday, May 22, JPMorgan analyst Marcelo Santos raised the firm's price target for MercadoLibre, Inc. (NASDAQ:MELI) from $2,250 to $2,600 but kept a 'Neutral' rating. This adjustment comes after MercadoLibre, Inc. (NASDAQ:MELI) reported strong results for Q1 2025, with revenue growing by 37% year-over-year. A customer using their phone to access an online commerce platform. Santos pointed out that the new price target for MercadoLibre, Inc. (NASDAQ:MELI) reflects higher contributions from Argentina and better results in the company's credit and first-party (1P) businesses. However, the analyst also noted that these positive results were partly balanced through increased investments in Brazil and Mexico. MercadoLibre, Inc. (NASDAQ:MELI) is the leading company in financial technology and e-commerce in Latin America. With operations in 18 countries, the company offers a wide range of products and services including an online marketplace, digital financial services, logistics services, advertising solutions, and merchant acquiring. While we acknowledge the potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MELI and that has a 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None.
Yahoo
24-05-2025
- Business
- Yahoo
MercadoLibre (MELI) Soars to Record Highs Amid Latin America's E-Commerce Boom
MercadoLibre (MELI) continues to reach new all-time highs, driven by exceptional growth across Latin America's rapidly expanding digital economy. As a leader in both e-commerce and fintech, the company once again delivered standout results in its latest earnings report, reinforcing its strong position in key markets such as Brazil, Mexico, and Argentina. With sustained momentum and a solid growth trajectory, I remain confident in MELI's long-term potential and reaffirm my bullish position on the stock. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter MercadoLibre's e-commerce platform, Mercado Libre Marketplace, is thriving as Latin America's go-to online shopping hub. In Q1, gross merchandise volume (GMV) hit $13.3 billion, up 17% year-over-year (40% on an FX-neutral basis), driven by 492 million items sold, marking a 27.8% jump. MercadoLibre's push into fast-moving consumer goods and underserved markets like Mexico, where e-commerce is still gaining traction, is paying dividends. By supercharging Mercado Envios with faster shipping and sharper pricing, the company has kept customers coming back, driving its unique active buyer count to an impressive 67 million in Q1 2025, a notable 25% jump from last year. Argentina's recovery has also stood out lately, with items sold rising 52% year-over-year, thanks to macro stabilization and market share gains. MELI's ability to refine its value proposition with better shipping and financing options has solidified its edge. Brazil and Mexico also chipped in, with commerce sales climbing 30% and 23%, respectively. So, besides selling more, we are looking at MELI building a sticky ecosystem that keeps customers coming back. Mercado Pago, MELI's fintech arm, is even more exciting, growing at breakneck speed, with total payment volume (TPV) soaring 43% to $58.3 billion in Q1. Fintech revenues jumped 43.3% to $2.6 billion, fueled by 64.3 million monthly active users, a 31.2% increase. The credit portfolio expanded 75% to $7.8 billion, with steady delinquency rates thanks to sharper scoring models. In Brazil, offering 120% of the CDI rate on deposits has supercharged user loyalty, positioning Mercado Pago as a digital banking leader. Moreover, MELI's high-yield accounts and credit cards drive cross-selling, especially in underbanked regions. Assets under management doubled to $11.2 billion, which is quite a testament to MELI's ability to convert e-commerce users into fintech customers. This synergy between shoppers using Mercado Pago for payments and loans creates a flywheel effect, amplifying growth across both segments. It's no wonder most analysts are buzzing about MELI's fintech potential as a long-term revenue driver. One relatively quick way to boost valuation and market presence is to deploy cash into mergers and acquisitions. MercadoLibre's leadership continues to double down on long-term growth, channeling significant funds into logistics and credit expansion in Q1 2025. Despite a $10 million hit to adjusted free cash flow, investments in new warehouses and cutting-edge tech are already yielding faster delivery times and improved customer satisfaction. First-party GMV growth, for instance, was boosted by better product selection and operational efficiencies, as noted by EVP Ariel Szarfsztejn. A $2.5 billion investment plan in Mexico also boosted MELI's e-commerce and payments presence. While these moves pressure margins short-term, I believe they're strategic bets on Latin America's low e-commerce penetration, which is still under 5% of retail in some markets. Management's focus on user experience, like faster shipping and competitive pricing, also widens its moat against rivals. In Argentina, operational tweaks and cost efficiencies have driven profitability, with U.S. dollar revenues doubling year-over-year. So clearly, these investments aren't mindless spending but instead are building a foundation for decades of dominance. Following its recent surge, MELI's stock might raise eyebrows at a forward P/E of about 52. But when you dig into the numbers, it's hard to call it overpriced. For context, net income climbed 43.6% in Q1 to $494 million, with an 8.3% margin, while EPS of $9.74 crushed estimates by 17.8%. In the meantime, consensus forecasts predict EPS growth of over 30% annually over the next few years, meaning MELI's momentum is not expected to evaporate any time soon. This growth trajectory justifies the premium. MELI's operating margin held steady at 12.9%, despite heavy investments, thanks to marketing and product development efficiencies. Also, with revenue projected to grow 17.3% annually and a future return on equity of over 40%, MELI is essentially poised to grow into its valuation relatively comfortably. I would even argue it remains undervalued, given that analysts have historically been conservative with their estimates on the name. Despite the stock's steep post-earnings rally, Wall Street remains optimistic about MercadoLibre. MELI stock retains a Strong Buy consensus rating, with 12 analysts currently bullish and just one neutral. Not a single analyst is bearish. MercadoLibre's average stock price target of $2819.55 indicates an upside potential of ~9% over the coming twelve months. MercadoLibre's Q1 performance again reminded us why it's a standout in e-commerce and fintech. With robust growth in its marketplace, a booming fintech division, and smart investments paving the way for future gains, MELI is capitalizing on Latin America's digital transformation. Sure, the stock's not cheap, but its stellar earnings growth and massive market opportunity make it a compelling hold. As the region's digital economy evolves, I'm betting MELI will keep delivering outsized returns for patient investors. Disclaimer & DisclosureReport an Issue 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
