- MercadoLibre’s net revenue for the 4th quarter was $4.3 billion, which is a 43% increase year over year and beat the estimated $4.15 billion.
- The gross merchandise volume was $13.5 billion, a 40% increase year over year, surpassing the estimated $12.4 billion.
- The payment volume was $56.5 billion, a 57% increase year over year, outperforming the estimated $51.58 billion.
- The total number of unique active users of financial products in the 4th quarter increased 21.3% year over year to reach 53 million, the first time it exceeded 50 million users.
- Revenue from the Commerce business grew 48.1% year over year, helped by an increase in first-party product sales.
- Fintech revenue grew 34.2% year over year, boosted by accelerating credit revenues.
- Fourth-quarter revenue grew 42.0% to reach $4.3 billion, thanks to strong performances in Brazil, where revenue was up 45.6% year over year, and in Mexico, which delivered 51.4% year-over-year growth.
MercadoLibre on Smartkarma
MercadoLibre, a leading e-commerce company in Latin America, has been making headlines on Smartkarma, an independent investment research network. According to research reports from Baptista Research and Steven Holden, the sentiment towards MercadoLibre is bullish as the company continues to deliver impressive results.
In their report “MercadoLibre Inc.: Unveiling the Secret Behind Their Exceptional Fintech and Commerce Boom! – Major Drivers”, Baptista Research highlighted the company’s strong growth and profitability in the latest quarterly results. They also noted Mexico as a standout performer with a revenue growth of over 60% and Brazil with a growth rate of approximately 40%. The commerce sector also saw an acceleration in growth across the primary geographies of operation during Q3.
Baptista Research also published another report, “MercadoLibre Inc.: Initiation of Coverage – Business Strategy”, where they expressed positive sentiments towards MercadoLibre’s potential for solid margin expansion and above-market-average growth rates.
The sentiment towards MercadoLibre is mirrored in Steven Holden‘s report, “MercadoLibre’s Bullish Run Continues“, where he mentions the company’s significant increase in ownership among active EM managers. Holden also noted that MercadoLibre has recently overtaken AIA Group as the largest overweight stock position across all regions.
A look at MercadoLibre Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for MercadoLibre, an online trading site for the Latin American markets, looks promising based on its Smartkarma Smart Scores. The company has received a score of 5 for growth, indicating a strong potential for future expansion and profitability. This is supported by its 4 out of 5 scores for both resilience and momentum, indicating its ability to withstand market challenges and maintain a positive trajectory. However, MercadoLibre received a low score of 1 for dividends, suggesting that it may not be a strong option for investors looking for regular income. Additionally, with a value score of 2, the company may not be considered undervalued in the market. Overall, MercadoLibre’s performance in the Smart Scores suggests a positive outlook for the company’s growth and resilience in the long term.
MercadoLibre, Inc. is a company that operates an online trading site in the Latin American markets. Its website allows businesses and individuals to buy and sell items online through auctions or fixed-price listings. In addition to its trading platform, the company also offers classified advertisements for various items such as motor vehicles, vessels, aircraft, and real estate. MercadoLibre also provides online payment services, making it a convenient and comprehensive platform for online transactions. With a focus on the Latin American market, the company has the potential for significant growth and success, as reflected in its high score of 5 for growth in the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
