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

Off-Platform Payments, Marketplace/Logistics Enhancements Bolster MercadoLibre's Long-Term Potential

We find there are three important takeaways from MercadoLibre's strong start to 2019, which was accentuated by 93% constant-currency revenue growth and a return to positive operating margins for the first time in five quarters. First, payments are becoming as important as (and may surpass) its marketplaces to future cash flow. We've long thought that a strong network effect can allow e-commerce players to unlock incremental growth, and while we've highlighted Amazon and Alibaba for this in the p...
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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