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Here's How Much a $1000 Investment in MercadoLibre Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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 South 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 $10.5 billion in 2022. 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 2022, Brazil generated 53.8% of the company’s revenues. Argentina, Mexico and Other Countries generated 23.7%, 17.7% and 4.8% 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in MercadoLibre ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2013 would be worth $10,615.93, or a 961.59% gain, as of August 10, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 164.14% and the price of gold increased 40.15% over the same time frame in comparison.
Going forward, analysts are expecting more upside for MELI.
MercadoLibre reported impressive second-quarter 2023 results. Both earnings and revenues surged on a year-over-year basis. Revenues were driven by accelerating commerce and fintech revenues. Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising gross merchandise volume (GMV) remained another positive. Strong shipment growth also contributed well to the reported results. MercadoLibre is benefiting from strength in its commerce and fintech businesses. Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the TPV. Also, rapid adoption of Mobile Wallet remains a positive. Shares have outperformed the industry year to date. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts are major concerns.
The stock is up 15.03% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in MercadoLibre Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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 South 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 $10.5 billion in 2022. 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 2022, Brazil generated 53.8% of the company’s revenues. Argentina, Mexico and Other Countries generated 23.7%, 17.7% and 4.8% 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in MercadoLibre ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2013 would be worth $10,615.93, or a 961.59% gain, as of August 10, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 164.14% and the price of gold increased 40.15% over the same time frame in comparison.
Going forward, analysts are expecting more upside for MELI.
MercadoLibre reported impressive second-quarter 2023 results. Both earnings and revenues surged on a year-over-year basis. Revenues were driven by accelerating commerce and fintech revenues. Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company. MercadoLibre’s rising gross merchandise volume (GMV) remained another positive. Strong shipment growth also contributed well to the reported results. MercadoLibre is benefiting from strength in its commerce and fintech businesses. Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the TPV. Also, rapid adoption of Mobile Wallet remains a positive. Shares have outperformed the industry year to date. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts are major concerns.
The stock is up 15.03% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023. The consensus estimate has moved up as well.