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Is Sea Limited a Threat to Latin America's E-Commerce Giant, MercadoLibre?

By Jose Najarro - Jun 28, 2021 at 10:30AM

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In the past year, Sea Limited has expanded into numerous Latin American countries. Should MercadoLibre Investors be worried?

In today's video I look at how and why Sea Limited (SE -6.38%) is expanding into Latin America and what it means to MercadoLibre (MELI -5.30%), the current e-commerce giant in that region. Below I share a few highlights from the video. 

  1. The fastest e-commerce sales growth for 2020 came from Latin America. So it makes perfect sense that this southeast Asian company is expanding to Latin America since there is so much growth potential.
  2. App Annie reported that Shopee, Sea Limited's e-commerce application, was in the top five daily downloads under the shopping category for the Google (GOOG -1.79%) (GOOGL -1.77%) Play store on June 26, 2021, in Brazil, Mexico, Chile, and Colombia. 
  3. For 2020 Statista reports that MercadoLibre made up nearly a quarter of the total retail e-commerce sales in Latin America. MercadoLibre also has a significant lead on its international competitors because it manages most of its delivery logistics network. 

Click the video below for my full thoughts and analysis. 

*Stock Prices used were the closed prices of June 25, 2021. The video was published on June 27, 2021. 

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jose Najarro owns shares of Alphabet (C shares), MercadoLibre, and Sea Limited. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), MercadoLibre, and Sea Limited. The Motley Fool has a disclosure policyJose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Mercadolibre, Inc. Stock Quote
Mercadolibre, Inc.
$997.90 (-5.30%) $-55.85
Sea Limited Stock Quote
Sea Limited
$72.49 (-6.38%) $-4.94
Alphabet Inc. Stock Quote
Alphabet Inc.
$119.55 (-1.77%) $-2.15
Alphabet Inc. Stock Quote
Alphabet Inc.
$120.32 (-1.79%) $-2.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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