Why Now Is the Time To Buy This Latin American Stock

Why Now Is the Time To Buy This Latin American Stock

The company enjoyed consistent growth in all areas.

In its latest earnings report, MercadoLibre ( MELI 7.65% ) posted a strong quarter. In this video clip from “The Future of Fintech” on Motley Fool Live , recorded on Feb. 24 , Fool.com contributors Danny Vena and Matt Frankel look at the impressive numbers for the Latin American e-commerce giant that will get investors excited. Video Player is loading. Play Video



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FullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button. Should you invest $1,000 in Mercadolibre, Inc. right now? Before you consider Mercadolibre, Inc., you’ll want to hear this.Our award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now… and Mercadolibre, Inc. wasn’t one of them.The online investing service they’ve run for nearly two decades, Motley Fool Stock Advisor , has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys. *Stock Advisor returns as of March 3, 2022 Danny Vena: MercadoLibre has been called a lot of things. When it first arrived on the scene it was called the eBay ( EBAY -0.06% ) of Latin America because back then, eBay was the dominant e-commerce platform. Since then, it has been called the Amazon ( AMZN 2.40% ) of Latin America because now it hosts e-commerce platforms for a wide variety of merchants across Latin America. It’s been called the PayPal ( PYPL 5.61% ) of Latin America because of its fintech arm, Mercado Pago.It offers a wide variety of things and it’s earned all those names but really none of those paint a full picture of what it is MercadoLibre does. If you’ve been looking at the slide here, as I’m sure you have, it covers a lot of area. I’m going to stop that screen share for just a minute and I’m going to jump forward to the numbers.Now, one of the things that we have seen lately with a lot of e-commerce stocks is the fact that they put up pretty good numbers year-over-year, but they haven’t been near the level that they were growing triple digits during the pandemic. A lot of that has caused the e-commerce stocks to fall because some investors think, well, e-commerce is over. It got a bump from the pandemic and now we’re not going to see growth for years.Mercado Libre really turned that on its head. Not only did the company grow pretty impressively, year-over-year up 74% in the fourth quarter, but also it edged higher sequentially across a variety of metrics. Gross merchandise volume was up year-over-year and sequentially. That is the value of the products sold on its platform.Its fintech arm did a lot better than that. Total payment volume grew 73%, and that was up from 59% in the third quarter. Off platform total payment volume. I want to take a second on that. MercadoLibre used to be like PayPal, just something that MercadoLibre used on its platform in order to help users make payments.Because we’re talking about an area of the world that is still largely cash-based, half the people in the region don’t have a checking account, don’t have a credit card, and Mercado Pago allowed them to go to the local convenience store, give some money to the cashier, have it added to their account, and boom, use Mercado Pago like a credit card. It became so popular, however, that it moved off of MercadoLibre’s platform and a lot of merchants that had websites said, “Hey, I want to use that payment method here too because it’s so popular.”Eventually, it moved off the platform and is now accepted at a growing number of brick-and-mortar stores. You can see the off-platform total payment volume nearly doubled again year-over-year and that’s up from 79% growth in the third quarter. By and large, MercadoLibre delivered on all of the metrics that matter. We saw consistent growth in its user base, we saw consistent growth in the non-financial metrics […]

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