MercadoLibre's revenue jumped 49% last quarter to $8.8 billion, its fastest growth rate in four years, ahead of its Aug. 5 earnings report. The Brazilian market saw a 56% increase while unit shipping costs dropped 17% year over year, reflecting improved infrastructure and logistics. Despite the strong top-line performance, the stock has fallen more than 20% over the past 12 months as investors reacted to a temporary dip in operating margin from reinvestment in growth. The company currently trades at less than 3 times sales with a PEG ratio of 1.15, suggesting it may be fairly priced or slightly undervalued.
MercadoLibre Inc.Revenue jumped 49% to $8.8B, fastest growth in four years, with improved logistics and potential undervaluation.