Opinions Jason Del Vicario
MercadoLibreMELIHOLDJun 06, 2025
Stock price when the opinion was issued
You might be interested:
Investor sentiment and chart are looking rough. Secular growth story still intact. For latest quarter, revenue jumped 49% YOY. Lagged due to heavy investments into logistics and fintech, building dominant digital economy for the long term. Still sees double-digit growth of 39%, paying 36x forward PE.
Short-term pain for long-term gain.
Stan WongMELI's forward growth projections are robust, and while historical growth has been strong, it has moderated over time. Margins have improved substantially, and the company produces significant free cash flow. The stock trades at a premium 40X forward earnings multiple, though this valuation has compressed in recent years. They find it attractive at current levels but note risks from geopolitical issues and potential international growth deceleration. They would be comfortable initiating a position here. Unlock Premium - Try 5i Free
"The AMZN of Latin America", without the cloud business. Largest online e-commerce and payments ecosystem in the region, active in 18 countries. Valuation's not all that bad. The fintech arm is growing faster than the e-commerce side. Shares trending higher since mid-2022. EPS growth rate forecast at 35%. One of the top EM growth stories out there. No dividend.
(Analysts’ price target is $2535.46)Stan Wong
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentOur PAST TOP PICK with MELI has triggered its stop at $1923. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 28%, when combined with our previous guidance.
Premium contentPremium contentPremium contentPremium contentWe again reiterate this Latin American e-commerce company as a TOP PICK. Its investment in Brazil is growing over $4 billion this year and the company intends to hire 11,000 new workers there to keep up with demand. Recently reported earnings showed a 71% increase in profits. Cash reserves are growing, while debt is aggressively retired and shares bought back. We recommend trailing up the stop (from $1300) to $1450, looking to achieve $2000 -- upside potential of 25%. Yield 0%
(Analysts’ price target is $2007.59)Premium contentWe reiterate this e-commerce company, based in Buenos Aires, provider of online retail services in Latin America. It has 85 million unique customers using its services. We like that cash reserves are growing, while debt is aggressively retired and shares are bought back. We continue to recommend a stop at $1300, looking to achieve $1920 — upside potential of 30%. Yield 0%
(Analysts’ price target is $1921.38)
He's not that familiar with this one. Look at free cashflow (operating cashflow minus capex). As a tech company,
stock-based compensation could be a potential landmine (giving out shares, but it "doesn't count" because it's not a cash item). Strong company, though some negative ROIC in the past going back to 2018 (which was before Covid). Too expensive here to buy afresh.
Leader in Central and South America. If you own it, hold, as long as returns on capital continue strong and don't turn negative. Probably a compounder, as these are winner-take-all businesses.
See his Top Picks.