MercadoLibre is one of the best stocks of the past decade because of how much it has grown. If the company can keep growing revenue and profits, it could be a good stock from here.
Mercado Libre is reportedly investing more than ever before in coupons for this week's Black Friday sale amid heightened competition in Latin America from other online retailers such as Amazon, Shein, Shopee and Temu. The Latin American firm's investment in coupons amounts to nearly $19 million, Bloomberg reported Tuesday (Nov. 25).
Not owning Alibaba Group Holding Ltd. )(China, Consumer Discretionary sector) accounted for about a quarter of the underperformance. Among the top individual absolute contributors were Taiwan Semiconductor, Tencent, Contemporary Amperex Technology, Sea Ltd., and Nu Holdings. Among the top individual absolute detractors were MercadoLibre, Dino Polska, Globant SA, HDFC Bank, and Bank Central Asia.
MercadoLibre has a huge e-commerce presence in Latin America and a growing fintech business. Its regions are behind the U.S. in both of these segments, but they're growing quickly.
Meta Platforms is not only the second-largest ad tech company but also a leader in the burgeoning smart glasses market. MercadoLibre runs the largest online marketplace in Latin America, and the company is making smart investments to maintain its dominance.
Stan Druckenmiller added to his Coupang and MercadoLibre positions last quarter. Both stocks are fast-growing e-commerce players replicating the Amazon model, and have a lot of other potential growth drivers as well.
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