Mercadolibre Stock Soars 4.61% Hitting Historic High Amid Bullish Analyst Ratings
1min read Mercadolibre (MELI) experienced a 4.61% increase, marking a continuous two-day rise and achieving a 6.07% gain over this period. The stock's intraday price reached a historic high.
On September 12th, B of A Securities reaffirmed its "Buy" rating for Mercadolibre, adjusting the target price to $2500.00. The reaffirmation came shortly after Mercadolibre's mid-year report for 2024, which was released on August 2nd. The report highlighted a revenue of $94.06 billion for the period ending June 30, 2024, reflecting a 38.92% year-over-year increase. The company's net profit stood at $8.75 billion, with basic earnings per share of $17.26.
Founded on October 15, 1999, and incorporated in Delaware, Mercadolibre, Inc. operates as the largest online commerce ecosystem in Latin America, driven by unique visitors and processed orders. The company offers a comprehensive and secure environment for buyers and sellers, fostering a vibrant e-commerce community in a region with over 650 million inhabitants. The area boasts one of the fastest internet penetration and e-commerce growth rates globally. Mercado Libre Marketplace, the company's automated and user-friendly platform, is accessible via websites and mobile applications. It allows vendors to list and sell a diverse array of products, including consumer electronics, apparel and beauty products, home goods, automotive parts, toys, books, entertainment, and packaged consumer goods.
During a telecommunications and technology conference on September 10, Martin de Los Santos, Mercadolibre's Chief Financial Officer, underscored the significant growth potential within the company's ecosystem. In Brazil and Mexico, commercial activities grew by 36% and 30%, respectively. The total payment volume (TPV) of credit card transactions surged by over 200%. Additionally, the company's advertising business exhibited robust growth, maintaining a year-over-year increase of over 50% for the past 16 quarters. The Meli Play initiative aims to deliver free content to millions of users, generating substantial advertising revenue and further expanding the company's growth potential. In the financial technology sector, Mexico remains a critical market due to its low financial inclusion, offering vast development opportunities. Mercadolibre continues to invest heavily in its logistics infrastructure to support business expansion. In the second quarter, the company generated $678 million in free cash flow, nearing $850 million for the first half of the year.
In another development, Cantor Fitzgerald initiated coverage of Mercadolibre on September 5 with an "Overweight" rating and a target price of $2530.00.
The August 2 mid-year report for 2024 emphasized company growth, with revenues of $94.06 billion and net profits of $8.75 billion, showcasing the substantial progress Mercadolibre has made in the Latin American market.
Mercadolibre's operational strategy continues to capitalize on Latin America's burgeoning online commerce sector, achieving commendable growth milestones and reaffirming its position as a pivotal player in the region's digital economy.