📈 Many investors overlook opportunities in emerging markets, but MercadoLibre, Inc. (NASDAQ:MELI) shines as a leader in Latin America. In Q2 2024, the company reported a 42% rise in revenue year-over-year to $5.1 billion, with net income jumping 103% to $531 million. With strong results from Brazil and Mexico, MercadoLibre continues to dominate the e-commerce and fintech sectors, making it an exciting stock for investors.
💡 Mercado Envios, MercadoLibre’s logistics network, has become a key competitive advantage. It offers faster, cheaper deliveries across Latin America, allowing the company to outperform competitors. A new fulfilment centre in Texas has further enhanced cross-border shipping from the U.S. to Mexico, offering free shipping to consumers, helping maintain its leading market position.
📊 In Brazil, GMV grew 36% year-over-year, and Mexico posted a 30% increase. Even in Argentina, where the economy is struggling, MercadoLibre achieved 252% FX-neutral GMV growth. With over 65 million buyers and 12 million sellers, the platform’s strong network effect makes it hard for competitors like Amazon or Walmart to break into this market.
🚀 Mercado Pago, MercadoLibre’s fintech division, is also a major growth driver, surpassing 50 million active users. Its credit portfolio grew 51%, with the credit card segment in Brazil and Mexico showing the fastest expansion. Mercado Pago continues to attract millions of new users to digital financial services, making it a critical part of MercadoLibre’s business.
💰 Financially, MercadoLibre is in a strong position. The company’s free cash flow yield is 5.52%, and its net debt to EBITDA ratio stands at 0.33, showing financial stability. For investors seeking high-growth opportunities in Latin America, MercadoLibre presents a compelling case for long-term investment.
What do you think about it? Tag me on your favourite social media (Facebook / Instagram / LinkedIn / X).
P.S. I research and interview economists, NZ investors and profitable companies to find tools & tactics that you can use to achieve financial freedom.
➔ Join my private newsletter to be the first one to learn insider tips! Here are examples of what you’ll get. It’s FREE. You can unsubscribe at any time. I treat your email as my top secret.
IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.