MercadoLibre's Stock Grows $10K to $176K Over a Decade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Significant Investment Returns: Over the past decade, a $10,000 investment in MercadoLibre has grown to $176,000, showcasing the company's robust performance and sustained growth potential in the Latin American e-commerce market.
- Strong Revenue Growth: Last quarter, MercadoLibre's gross merchandise volume increased by 35% year-over-year, translating to a 49% revenue growth, indicating its strong competitive position in the rapidly expanding e-commerce sector.
- Low Market Valuation: Currently, the company's price-to-sales ratio stands at 3.8, significantly lower than its 10-year average of 9.8, providing investors with solid value and the potential for market-beating returns in the future.
- Future Growth Expectations: Analysts project that MercadoLibre's revenue will grow at an annualized rate of 21% over the next decade, while expanding margins could lead to earnings growth of around 38%, presenting wealth-building opportunities for shareholders.
MELI
$2005.71+Infinity%1D
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 2811 USD with a low forecast of 2500 USD and a high forecast of 3000 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.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 1998.210
Low
2500
Averages
2811
High
3000
Current: 1998.210
Low
2500
Averages
2811
High
3000
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.
