Down 40%, Is It Time To Buy MercadoLibre?
MercadoLibre (NASDAQ: MELI) has been a top stock throughout its history as it's built Latin America's largest e-commerce and digital payments business.
However, more recently, the company has come under pressure. The stock has fallen as it has faced intensifying competitive pressure from Amazon and Sea Limited's Shopee, and at the same time, its profit margins are falling as it spends on infrastructure. That includes the expansion of its logistics network and credit business in part to fend off that competition. That also includes lowering the free shipping threshold in Brazil, its core market.
So is the sell-off justified, or is MercadoLibre just in the middle of an investment cycle that will pay off? Let's take a look at where MercadoLibre stands after its latest report.
Source Fool.com
Mercadolibre Inc Stock
With 36 Buy predictions and not a single Sell prediction Mercadolibre Inc is an absolute favorite of our community.
As a result the target price of 2294 € shows a positive potential of 43.29% compared to the current price of 1601.0 € for Mercadolibre Inc.
