Why MercadoLibre, Inc. Could Be a Gold Mine for Growth Investors
Unless you've ever spent time in Latin America, you've likely never heard of MercadoLibre, Inc. (NASDAQ: MELI), the region's e-commerce powerhouse. Those familiar with the company may cite several reasons for staying away: uncertainty surrounding the economy in its local markets, encroaching competition from Amazon.com, Inc. (NASDAQ: AMZN), and its sky-high valuation, to name a few.
Hyperinflation in Argentina, the devaluation of the bolivar (the local currency in Venezuela), and continuing political uncertainty in Brazil have conspired to limit economic stability in the region. Amazon has been increasing its presence in several of MercadoLibre's largest markets, raising fears that the smaller company is no match for the online juggernaut. As of this writing, MercadoLibre currently trades at a nosebleed 91 times trailing earnings and an even higher forward multiple of 102 times.
On the surface, these look like significant reasons to avoid the stock but dig a little deeper and investors will find more compelling reasons to get on board.
Source: Fool.com
Mercadolibre Inc Stock
The stock is an absolute favorite of our community with 23 Buy predictions and no Sell predictions.
With a target price of 1769 € there is a slightly positive potential of 12.76% for Mercadolibre Inc compared to the current price of 1568.8 €.
