Latest news with #MercadoPago
Bloomberg
3 days ago
- Business
- Bloomberg
Fintech Mercado Pago Will Apply for Argentina Banking License
Mercado Pago, the digital wallet and financial services arm of MercadoLibre, will request a banking license from Argentina's central bank as part of its effort to expand its ecosystem, according to a statement Wednesday. The goal is to offer more services through its fully digital model as the move follows similar steps already taken in Brazil and Mexico.
Yahoo
24-05-2025
- Business
- Yahoo
Why I'm Not Selling MercadoLibre After a 100% Gain
My shares of MercadoLibre more than doubled in value over the past four years. The company's revenue and profits are soaring as it locks in more buyers and sellers. The stock still looks reasonably valued relative to its growth potential. These 10 stocks could mint the next wave of millionaires › I started to invest in MercadoLibre (NASDAQ: MELI), Latin America's largest e-commerce company, back in March 2021. I continued to accumulate more shares throughout 2021 and 2022, and that position now accounts for nearly 8% of my portfolio. With an average purchase price of $1,253 per share, I'm sitting on an unrealized gain of about 106% as of this writing. However, I don't plan to trim or sell this top holding for three simple reasons. MercadoLibre, which was founded in 1999, now operates across 19 Latin American countries. Most of its customers are located in Argentina, Brazil, and Mexico. It was founded in Argentina, but is currently headquartered in Uruguay and has been mulling a move to the United States. MercadoLibre established an early mover's advantage by building its logistics networks across undeveloped infrastructure and challenging terrain. That expansion locked in its shoppers long before Amazon (NASDAQ: AMZN) and its other overseas competitors considered entering the market. It also expanded its fintech ecosystem with its digital payment platform Mercado Pago and credit platform Mercado Crédito, as well as its other digital wallet and crypto trading services. From 2021 to 2024, its revenue grew at a compound annual growth rate (CAGR) of 43%. It reached more than 100 million annual unique active buyers and 60 million fintech monthly active users (MAUs) at the end of 2024, but that only represents a fraction of the 451 million adults who live in Latin America and the Caribbean. As income levels and internet penetration rates rise across the region, MercadoLibre should gain even more shoppers and fintech users. According to Grand View Research, the Latin American e-commerce market could continue to expand at a CAGR of 16.7% from 2024 to 2030. IMARC Group expects the region's fintech market to expand at a CAGR of 15.9% from 2025 to 2033. From 2024 to 2027, analysts expect MercadoLibre's revenue to grow at a CAGR of 24% as it rides high on those secular tailwinds. From 2018 to 2020, MercadoLibre turned unprofitable as it aggressively ramped up spending on its logistics, fintech, and technology platforms. Marketing expenses also climbed as it intensified margin-crushing promotions to gain new customers. But in 2021, MercadoLibre turned profitable again. Net income subsequently grew at a CAGR of 185% over the following three years. Profits rose as the company sold more profitable products on its first-party marketplace, expanded its higher-margin third-party marketplace by attracting more merchants, and generated more revenue from its higher-margin credit and advertising segments; it also leveraged its prior investments to dilute its logistics, payment processing, and marketing costs. From 2024 to 2027, analysts expect MercadoLibre's EPS to grow at a CAGR of 34%. As MercadoLibre flourished, many of its competitors struggled. Its top competitor in Brazil, Americanas S.A., was rocked by a disastrous accounting scandal over the past two years. Singapore's Sea Limited, which launched its Shopee marketplace in Latin America in 2019, scaled back its ambitions over the following years as it racked up steep losses. Amazon, which arrived in 2012, hasn't gained much of a foothold either. MercadoLibre's stock trades at about $2,579 per share as of this writing. Yet it still looks reasonably valued relative to its growth potential, at 52 times this year's earnings and 4.8 times this year's sales. For reference, Amazon -- which is growing at a much slower rate -- trades at 33 times this year's earnings and 3.2 times this year's sales. With a market cap of $131 billion, MercadoLibre is also still tiny compared to other e-commerce heavyweights like Amazon and Alibaba, which are worth $2.17 trillion and $299 billion, respectively. That lower market cap, along with its rapid growth rates and reasonable valuations, might give it a bit more upside potential than those market leaders. MercadoLibre is usually a volatile stock, and its valuations are likely being squeezed by persistent concerns about inflation, political unrest, and other macro headwinds in Latin America. But if you expect it to keep dominating the region's booming e-commerce and fintech markets, it's still one of the best growth stocks to buy, hold, and forget for the next decade. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $344,462!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,226!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $640,662!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Sea Limited. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy. Why I'm Not Selling MercadoLibre After a 100% Gain was originally published by The Motley Fool
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
Yahoo
13-05-2025
- Business
- Yahoo
MercadoLibre vs. Block: Which Fintech-Driven Stock Has More Upside?
MercadoLibre MELI and Block XYZ are well-known names in the growing fintech space. Both companies have gained strong attention for their digital payment solutions. While MercadoLibre is a major player in Latin America through its Mercado Pago platform, Block is known for its Cash App and Square in the United the Mordor Intelligence report, the fintech market size is estimated at $356.73 billion in 2025. It is expected to witness a CAGR of greater than 14% over the forecast period 2025-2030, reaching $686.89 billion by 2030. Both MELI and XYZ are well-positioned to take advantage of this strong growth in the fintech take a closer look at the fundamentals of the two stocks to determine which one has the greater upside potential. MercadoLibre's fintech arm, Mercado Pago, continues to be a major growth engine in the first quarter of 2025, delivering strong performance across multiple fronts. Monthly active users surged past 64 million, growing at a rate of more than 30% year over year. This reflects not only robust user acquisition but also increased engagement across its company's credit portfolio expanded 75% year over year, while maintaining healthy asset quality. In Brazil, credit card first payment defaults reached an all-time low, attributed to improved scoring models and a shift toward higher-quality borrowers. Argentina also stood out, with the credit portfolio growing fourfold in U.S. dollar terms and delivering increased profitability, supported by macroeconomic Pago has been integrated more tightly with the broader MercadoLibre ecosystem, undergoing a visual rebrand and UX overhaul to mirror a more specialized digital banking further strengthen its deposit base, Mercado Pago offered an attractive 120% of Brazil's CDI rate through targeted loyalty-linked programs. To receive this rate, users must meet specific conditions, including being part of the loyalty program, placing funds into a special pot, and adhering to a contribution limit of a few thousand Brazilian Reals. This initiative helped boost awareness and reinforced Mercado Pago's positioning as a leading digital bank in the region. Block's fintech business, led by Cash App, showed strength in the first quarter of 2025 despite macroeconomic headwinds. Cash App's gross profit rose 10% year over year, and gross profit per monthly transacting active user reached $81. The company hit a key milestone in March with FDIC approval to use its in-house bank, Square Financial Services, to issue consumer loans. This move is expected to significantly improve unit economics and expand Cash App Borrow's reach to more users across the United States. The retroactive BNPL feature, Cash App Afterpay, launched in February, also saw strong early also maintained healthy underwriting metrics for Borrow, with loan durations under 30 days and consistent repayment rates. The company emphasized confidence in the company's ability to manage risk dynamically using machine learning models that respond to real-time data. The Cash App Borrow expansion is strategically tied to its banking offerings, especially direct Cash App's gross profit came in below internal expectations due to weaker-than-expected inflows and discretionary spending during tax season. Spending categories like travel and media saw notable pullbacks. The company attributed part of this softness to a changing macro environment and revised full-year guidance accordingly, including more caution in the outlook. Block now expects 12% gross profit growth for 2025, amounting to approximately $9.96 billion. The guidance is more conservative than usual. Despite strategic product rollouts and credit expansion, Block is still navigating slower-than-anticipated consumer spending behaviour, which has affected growth momentum. While long-term fundamentals remain intact, near-term performance remains sensitive to macroeconomic trends and evolving consumer sentiment. Performance metrics strengthen Mercadolibre's case. Year to date, shares of MELI have rallied 47.2%, while XYZ shares have plunged 35.3%. MELI's performance has been fueled by two strong earnings reports in a row, which came out to be better than expected. On the other hand, a challenging macroeconomic environment with the growing risk of a recession due to higher tariffs has hurt Block shares. Image Source: Zacks Investment Research In terms of Price/Cash Flow, Block shares currently trade at 25.87X, higher than MELI's 17.07X. This makes MELI significantly more attractive for a high-growth stock. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MELI's 2025 earnings is pegged at $47.92 per share, which has been revised upward by 1.7% over the past 30 days, indicating a 27.14% increase year over year. The consensus estimate for 2025 revenues is pinned at $26.53 billion, suggesting year-over-year growth of 27.67%. MercadoLibre, Inc. price-consensus-chart | MercadoLibre, Inc. Quote The Zacks Consensus Estimate for XYZ's 2025 earnings is pegged at $2.72 per share, which has been revised downward by 30.4% over the past 30 days, indicating a 19.29% decrease year over year. The consensus estimate for 2025 revenues is pinned at $24.98 billion, suggesting year-over-year growth of 3.54%. Block, Inc. price-consensus-chart | Block, Inc. Quote MercadoLibre continues to impress with rapid fintech adoption across Latin America. In the first quarter of 2025, strong credit growth, rising monthly active users, and robust profitability drove investor confidence. Meanwhile, a disciplined cost structure and solid performance from Mercado Pago have kept momentum on the other hand, faces near-term challenges. While Cash App Borrow expansion and BNPL integrations show promise, macroeconomic uncertainty and weaker-than-expected first-quarter performance have forced the company to lower guidance. As MercadoLibre continues performing well, Block remains under pressure as it struggles to regain footing amid cautious consumer behaviour and valuation MELI has a Zacks Rank #3 (Hold), making the stock a stronger pick compared with XYZ, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Block, Inc. (XYZ) : 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
02-05-2025
- Business
- Yahoo
MercadoLibre, Inc. to Report First Quarter 2025 Financial Results
MONTEVIDEO, Uruguay, May 02, 2025 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq: MELI) ( announces that it intends to release financial results for its first fiscal quarter ending March 31, 2025, on May 7, 2025. The Company will host its earnings results video conference, as well as a conference call and audio webcast, on May 7, at 5:00 p.m. Eastern Time. In order to access our video webcast and the live audio, investors, analysts and the market in general may access the following link at to attend the live event. To participate in our conference call Q&A, investors, analysts and the market in general may access the following link or dial in through the following numbers: TOLL FREE 1-833-821-3654 | INTERNATIONAL 1-412-652-1249 and ask to join MercadoLibre's conference call to be able to pose questions. Access to our video webcast and the live audio will be available in the investor relations section of the Company's website, at An archive of the webcast will be available for one week following the conclusion of the conference call. About MercadoLibre MercadoLibre is the largest online commerce ecosystem in Latin America, based on unique visitors and processed orders, and is also one of the region's leading fintech platforms. Our efforts are centered on enabling e-commerce and digital financial services for our users by delivering a complete suite of technology solutions. The company is present in 18 countries including: Argentina, Brazil, Mexico, Colombia, Chile, Colombia and Peru. Through its e-commerce platform, MercadoLibre provides buyers and sellers with a robust and safe environment that fosters the development of a large e-commerce community in Latin America, a region with a population of over 650 million people and with one of the fastest-growing Internet penetration and e-commerce growth rates in the world. We believe that we offer world-class technological and commercial solutions that address the distinctive cultural and geographic challenges of operating a digital commerce platform in Latin America. Through its fintech platform, MercadoPago, the company offers a comprehensive set of financial technology services to users of its e-commerce platform, and to users outside of its e-commerce platform. For individuals, those services include a digital account that offers a debit card, online payments, insurance, savings, investments and credit lines. For merchants, MercadoPago offers online and physical point-of-sale payments processing services as well as the digital account. For more information about visit: CONTACT: Investor Relations Contact: investor@ Media Relations Contact: in to access your portfolio
