With MercadoLibre Revenue Up 89%, Is Now the Time to Invest?
MercadoLibre's (NASDAQ: MELI) marketplace gets over 600 million visits per month. In this clip from "The 5" on Motley Fool Live, recorded on Jan. 18, Motley Fool contributor Trevor Jennewine analyzes the e-commerce powerhouse's financials and discusses why the stock could be a good fit for growth investors.
Trevor Jennewine: I think most Foolish investors are familiar with MercadoLibre (NASDAQ: MELI). This is the largest e-commerce and fintech ecosystem in Latin America. They operate across 18 different countries in the region. In addition to that marketplace and the fintech platform, the company's portfolio also includes shipping and fulfillment services, financing, digital advertising tools, and software that helps merchants to build their own online storefronts. MercadoLibre really has this comprehensive ecosystem that's designed to really facilitate commerce. In terms of inflation, the way that the company generates revenue, they take a percentage of that gross merchandise volume, so the total sales moving across the platform, then when a merchant uses the fintech platform, they take a percentage of the total payment volume. The chart on the right hand side of the slide show the company's GMV and TPV over the last several years, and they also do a year-over-year comparison. You can see that year-over-year for fintech take rate up a little bit, 3% versus 2.7%. The gross merchandise volume are valued. The take rate there is rising more quickly, 16.7% in the most recent quarter, up from 12.3%. To me, that evidence is the value that MercadoLibre creates for its clients. The fact that it is able to take more money off the top means that it must be providing some type of valuable service.
Source Fool.com
