Report
R.J. Hottovy
EUR 100.00 For Business Accounts Only

MercadoLibre Growth/Profitability Balance Improving as Network Effect Sets Up Long-Term Optionality

Shares of wide-moat MercadoLibre are up almost 9% in the past week on the heels of a $1 billion public equity offering as well as strategic investments from PayPal ($750 million common stock investment) and growth-oriented investment firm Dragoneer Investment Group ($100 million convertible preferred stock). In our view, these investments not only reinforce our longer-term positive bias on the company, but with MercadoLibre having open lines of communication with PayPal's operation team, we see ...
Underlying
MercadoLibre Inc.

MercadoLibre is engages in an online commerce ecosystem. Co.'s platform is designed to provide users with a portfolio of services to facilitate commercial transactions. Co. integrated e-commerce services includes: the MercadoLibre Marketplace, which is an automated, topically-arranged and user-friendly online commerce service; MercadoLibre Classifieds Service, which users can also list and purchase motor vehicles, vessels, aircraft, real estate and services; MercadoPago payments solution, providing a mechanism that allows its users to send and receive payments online; and MercadoLibre advertising program, which enable businesses to promote their products and services on the Internet.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
R.J. Hottovy

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