Should You Buy the Dip in MercadoLibre?

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?

Andrés Cardenal
Andrés Cardenal
Jul 22, 2014 at 10:07AM
Consumer Goods

E-commerce company MercadoLibre (NASDAQ:MELI) 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 (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).

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.