Should You Buy the Dip in MercadoLibre?

By Andrés Cardenal – Jul 22, 2014 at 10:07AM

NASDAQ: MELI

MercadoLibre

Market Cap

$69B

Today's Change

(0.87%) $11.80

Current Price

$1,368.23

Price as of April 22, 2024, 4:00 p.m. ET

MercadoLibre is down by 15% in the last six months due to fears over economic uncertainty in Latin America and the competitive threat from Amazon and eBay. However, the company is still firing on all cylinders, and it has enough competitive strength to defend its business against the competition. Should you buy the dip in MercadoLibre?

E-commerce company MercadoLibre (MELI 0.87%) has fallen 15% over the last six months on investors' concerns about economic uncertainty in Latin America and the competitive challenge from big U.S. players Amazon.com (AMZN 1.49%) and eBay (EBAY 1.09%).

However, the company is generating rock-solid performance in spite of economic headwinds, and it still offers exceptional opportunities for growth. Besides, the bears may be underestimating MercadoLibre's competitive strengths.

The slide show below offers some ideas for investors interested in looking at MercadoLibre and its potential for gains in the years ahead.

Andrés Cardenal owns shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com, eBay, and MercadoLibre. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.