MercadoLibre Stock Down 35%, Seen as Better Buy Than SpaceX and Magnificent Seven

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โดย The Motley Fool·Read original
Summary · why it matters

MercadoLibre stock has fallen 35% from its high, and the article argues it could be a better buy than SpaceX or any Magnificent Seven stock. The Latin American e-commerce and fintech leader reported 49% revenue growth in the first quarter, with 126 million unique active users, but operating income dropped from $763 million to $611 million year over year as margins compressed from 12.9% to 6.9% due to investment spending. The company sees massive runway given Latin America's e-commerce penetration of 14% versus 27% in the U.S. and 33% in China, and its fintech arm claims to be the largest digital bank in the region with 83 million monthly active users. At 45 times trailing earnings, the valuation is near a 10-year low, and with second-quarter earnings due August 5, July is viewed as an auspicious time to buy.

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Article argues stock is undervalued at 45x trailing earnings near 10-year low, with 49% revenue growth and massive runway in Latin America, making it a better buy than SpaceX or Magnificent Seven.

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