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Could This Be the Best E-Commerce Stock to Own?

By Jose Najarro – Nov 16, 2021 at 10:30AM

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MercadoLibre continues to show strong growth in Latin America.

Today's video focuses on MercadoLibre (MELI -1.00%) and its recent earnings, reported on Nov. 4 after the market closed. Here are some highlights from the video.

  1. MercadoLibre reported $1.9 billion in revenue, up 72.9% year over year (YOY) on an FX-neutral basis. The growth was driven by strong double-digit growth in revenue from its three main markets: Brazil, Argentina, and Mexico. 
  2. MercadoLibre is focusing on three key points to improve the user experience on its platform. First, it's increasing its product assortments by adding new services like online groceries. Second, it's enhancing its loyalty program, which adds value to returning customers. Third, it's improving its logistics by adding or improving new fulfillment centers and delivery options. 
  3. MercadoLibre's fintech business is also seeing substantial improvements. Total payment volume was $20.9 billion, up 59% YOY on an FX-neutral basis, driven by double-digit growth in Brazil, Mexico, and Argentina. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Nov. 15, 2021. The video was published on Nov. 15, 2021.


 

Jose Najarro owns shares of MercadoLibre. The Motley Fool owns shares of and recommends MercadoLibre. The Motley Fool has a disclosure policy. Jose 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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