MELI - Embedded Expectations Analysis - 2018 05 21
Mercadolibre, Inc. (MELI:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 117.3x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about growth and expensesSpecifically, management may lack confidence in the sustainability of gross merchandise volume growth, and may also lack FAconfidence in the sustainability of payment growth in their MPOS segment, particularly in Brazil. Additionally, they may have concerns about the additional costs they faced as a result of an unanticipated price increase by their main shipping carrier in Brazil, and may be concerned about their increasing operating expenses as a percentage of revenue
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.
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