Why the 'eBay of Latin America' is on fire

Shares of MercadoLibre soar after Q2 earnings top forecasts.

By Motley Fool Aug 2, 2013 2:30PM

MercadoLibre (MELI) shares have doubled in the past year. Here's why they're going even higher.

 

MercadoLibre is the dominant player in Latin American e-commerce. With second-quarter profits up 18% and revenue up nearly 40%, the stock is hitting a new 52-week high. While some say the stock's valuation is too rich, Motley Fool analyst Matt Argersinger says it still has a lot of room to run.

copyright Jack Hollingsworth, Blend Images, Getty ImagesBy virtually every metric, MercadoLibre's business is on fire. eBay (EBAY) itself has an 18% stake in MercadoLibre and the two companies view themselves as partners, not competitors.  And while today MercadoLibre's market cap is a mere fraction of eBay's, Argersinger believes in 10 years it will grow to be half of eBay's market cap.


The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now


MSN Money on Twitter and Facebook

Like us on Facebook: MSN Money and Top Stocks

Follow us on Twitter: @msn_money and @topstocksmsn


2Comments
Aug 2, 2013 4:01PM
avatar
It's on fire? Perhaps you should do some investigation into South American Postal logistics before you recommend anything like this. No SA country has a modern system and our own E-Bay struggles with 8 to 10 week delivery speeds because Customs is so incredibly log-jammed. Intra-continent deliveries aren't much faster. I will say several countries are joining the 21st Century with 3rd Party tracking and prompt expedition, the B.R.I.C. nations (yea, even China) aren't among them.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125
125 rated 1
264
264 rated 2
485
485 rated 3
679
679 rated 4
640
640 rated 5
617
617 rated 6
632
632 rated 7
493
493 rated 8
276
276 rated 9
153
153 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.