Why the 'eBay of Latin America' is on fire
Shares of MercadoLibre soar after Q2 earnings top forecasts.
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.
By 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.
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