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If You Invested $1000 in MercadoLibre a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in MercadoLibre (MELI - Free Report) ten years ago? It may not have been easy to hold on to MELI for all that time, but if you did, how much would your investment be worth today?
MercadoLibre's Business In-Depth
With that in mind, let's take a look at MercadoLibre's main business drivers.
Buenos Aires, Argentina based MercadoLibre, Inc. is one of the largest e-commerce platforms in Latin America. The company is a market leader in e-commerce in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico, and Uruguay based on unique visitors and page views.
The company also operates e-commerce platform in Honduras, Nicaragua, Dominican Republic, Salvador, Panama, Guatemala, Paraguay, Bolivia, and Portugal.
MercadoLibre reported revenues of $7.1 billion in 2021. The company offers a bunch of six integrated e-commerce services:
MercadoLibre Marketplace enables businesses and individuals to conduct sales, purchase online and list their merchandise.
MercadoLibre Classifieds offers online classified listing services for motor vehicles, real estate and services. These listing charge only optional placement fees and hence they are different from Marketplace listings.
MercadoPago FinTech platform allows users to send and receive payments seamlessly within MercadoLibre’s marketplace. Outside of this, merchants are allowed to process payments via websites, mobile apps and mobile point of sale.
MercadoLibre advertising program enables advertisers and seller to display their product ads on the company’s webpages.
MercadoShops online webstores solution aids users in managing and promoting their online stores.
MercadoEnvios logistics service provides integration with third-party carriers and logistics service providers to the sellers on the company’s platform.
MercadoLibre has four reportable geographic segments— Brazil, Argentina, Mexico and Other Countries. In 2021, Brazil generated 55.3% of the company’s revenues. Argentina, Mexico and Other Countries generated 21.7%, 16.6% and 6.5% of revenues, respectively.
Effective Dec 1, 2017, MercadoLibre deconsolidated its Venezuelan subsidiaries. The company no longer includes the balances, results of operations and cash flows of the Venezuelan subsidiaries in its consolidated financial statements.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in MercadoLibre ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $12,476.04, or a 1,147.60% gain, as of January 17, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 171.56% and the price of gold increased 9.43% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for MELI.
MercadoLibre is benefiting from strength in the commerce and fintech businesses. Robust product offerings and credit portfolio expansion are respectively driving the company’s commerce and fintech revenues. We expect commerce and fintech revenues to be up 25.6% and 30% in 2022 year over year, respectively. Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the total payment volume growth of the company. Our estimate suggests that the total payment volume is likely to witness a 60.5% rise in the current year from the last year’s figure. Also, rapid adoption of Mobile Wallet remains a positive. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts are major concerns. Also, rising e-commerce competition from players like Amazon and Rakuten poses a serious risk.
The stock is up 22.47% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.
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If You Invested $1000 in MercadoLibre a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in MercadoLibre (MELI - Free Report) ten years ago? It may not have been easy to hold on to MELI for all that time, but if you did, how much would your investment be worth today?
MercadoLibre's Business In-Depth
With that in mind, let's take a look at MercadoLibre's main business drivers.
Buenos Aires, Argentina based MercadoLibre, Inc. is one of the largest e-commerce platforms in Latin America. The company is a market leader in e-commerce in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico, and Uruguay based on unique visitors and page views.
The company also operates e-commerce platform in Honduras, Nicaragua, Dominican Republic, Salvador, Panama, Guatemala, Paraguay, Bolivia, and Portugal.
MercadoLibre reported revenues of $7.1 billion in 2021. The company offers a bunch of six integrated e-commerce services:
MercadoLibre Marketplace enables businesses and individuals to conduct sales, purchase online and list their merchandise.
MercadoLibre Classifieds offers online classified listing services for motor vehicles, real estate and services. These listing charge only optional placement fees and hence they are different from Marketplace listings.
MercadoPago FinTech platform allows users to send and receive payments seamlessly within MercadoLibre’s marketplace. Outside of this, merchants are allowed to process payments via websites, mobile apps and mobile point of sale.
MercadoLibre advertising program enables advertisers and seller to display their product ads on the company’s webpages.
MercadoShops online webstores solution aids users in managing and promoting their online stores.
MercadoEnvios logistics service provides integration with third-party carriers and logistics service providers to the sellers on the company’s platform.
MercadoLibre has four reportable geographic segments— Brazil, Argentina, Mexico and Other Countries. In 2021, Brazil generated 55.3% of the company’s revenues. Argentina, Mexico and Other Countries generated 21.7%, 16.6% and 6.5% of revenues, respectively.
Effective Dec 1, 2017, MercadoLibre deconsolidated its Venezuelan subsidiaries. The company no longer includes the balances, results of operations and cash flows of the Venezuelan subsidiaries in its consolidated financial statements.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in MercadoLibre ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $12,476.04, or a 1,147.60% gain, as of January 17, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 171.56% and the price of gold increased 9.43% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for MELI.
MercadoLibre is benefiting from strength in the commerce and fintech businesses. Robust product offerings and credit portfolio expansion are respectively driving the company’s commerce and fintech revenues. We expect commerce and fintech revenues to be up 25.6% and 30% in 2022 year over year, respectively. Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the total payment volume growth of the company. Our estimate suggests that the total payment volume is likely to witness a 60.5% rise in the current year from the last year’s figure. Also, rapid adoption of Mobile Wallet remains a positive. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts are major concerns. Also, rising e-commerce competition from players like Amazon and Rakuten poses a serious risk.
The stock is up 22.47% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.