In this video I will talk about the Latin American stock market Free Mercado (NASDAQ: MELI) and why I think it’s a staple in your long-term portfolio. You can find the video below.
Latin America’s $ 85 billion e-commerce opportunity only penetrated 6% of retail, compared to 18% globally. Brazil has less than 1% e-commerce retail penetration globally, yet, according to eMarketer, it is on the list of “Top 10 Countries Ranked by E-Commerce Retail Sales.” Brazil is second in terms of sales growth in 2021 and Argentina fourth. It is still in its infancy, but we must keep in mind the competition and the economic and political risks.
Just like Limited sea, MercadoLibre also has a few business segments, including:
- MercadoLibre, which is the marketplace.
- Mercado Envios, the logistics side of the company. They have grown and added new distribution centers in the different countries where they operate. Envios shipped 230.5 million items in the quarter.
- Mercado Pago, the fintech side of the company. Total payment volume exceeded $ 17.5 billion, an increase of 56.3% year over year.
- Mercado Publicidad, which is their advertising branch.
- Mercado Fondo, an asset management product, manages over $ 810 million and 19.3 million users in LaTam.
Recently, the company has grown and expanded all aspects of its business. He said he would look to add 8,500 people over the next four months to meet the high demand.
For the full information, watch the video below.
* The stock market prices used were the closing prices of September 15, 2021. The video was released on September 16, 2021.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.