MercadoLibre Reports 49% YoY Revenue Growth in Q3, Showcasing Strong Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: MercadoLibre's total revenue increased by 49% year-over-year in Q3 on a currency-neutral basis, showcasing the company's robust performance in the Latin American market and enhancing its future profitability potential.
- Increase in Active Users: The number of active buyers grew by 26% year-over-year in Q3, reaching the highest level in nearly five years, reflecting the positive impact of lowering the free shipping threshold in Brazil, which further drove sales growth.
- Fintech Expansion: MercadoPago's monthly active users rose by 29% year-over-year, with total payment volume increasing by 54%, demonstrating the company's strong competitiveness and market penetration potential in the digital banking sector in Latin America, particularly in Brazil.
- Investing for the Future: Although operating income increased by 30% year-over-year, the operating margin fell from 10.5% to 9.8%, which management views as a reasonable trade-off for expanding market share and driving long-term growth, indicating the company's strong confidence in future development.
Analyst Views on MELI
Wall Street analysts forecast MELI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MELI is 2783 USD with a low forecast of 2500 USD and a high forecast of 2950 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 2057.770
Low
2500
Averages
2783
High
2950
Current: 2057.770
Low
2500
Averages
2783
High
2950
About MELI
MercadoLibre Inc is a Uruguay-based e-commerce business facilitator of Argentinian origins. The e-commerce products enable retail and wholesale via Internet platforms designed to provide users with a portfolio of services to facilitate commercial transactions. The Company's geographic coverage includes 18 countries of Latin America. The primary offer is an ecosystem of six integrated e-commerce services: the Mercado Libre Marketplace, the Mercado Libre Classifieds service, the Mercado Pago payments solution, the Mercado Credito financial solutions, the Mercado Envios logistic solutions including shipping, the Mercado Ads advertising platform and the Mercado Shops digital storefront solution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
