In the realm of e-commerce, a hidden gem is emerging as a top contender on Wall Street. MercadoLibre, an Argentine-based online marketplace and payments platform, has seen its stock soar 34% in 2024, outpacing giants like Amazon and the S&P 500. Founded 25 years ago by CEO Marcos Galperin, the company has become the dominant force in online sales in Brazil, Argentina, Mexico, and Chile, accounting for nearly half of South America’s online transactions.
With a strong digital payments platform, Mercado Pago, the company has caught the attention of Wall Street analysts, with a staggering 90% rating it a “buy” and an average price target of $2,268, indicating an 8% upside. Brad Gerstner of Altimeter Capital is one of the bulls, citing expanding profit margins and the company’s AI potential as key drivers.
Galperin’s vision for MercadoLibre was born during his time at Stanford Graduate School of Business, where he recognized the lack of infrastructure and competition in Latin America as an opportunity. Despite the challenges, he persevered, building the company from scratch and eventually partnering with eBay.
Today, MercadoLibre is often referred to as the “Amazon of South America,” but Galperin is quick to point out that his company has evolved beyond auctions and is now more akin to Amazon. With Amazon expanding into Mexico, the competition is heating up, but Galperin remains confident, citing the region’s young, mobile-savvy population and the enormous opportunity to distribute financial products to the unbanked and underbanked.
As the company continues to grow, with revenue up 42% in the second quarter and operating profit margins expanding to 14.3%, it’s clear that MercadoLibre is a force to be reckoned with in the world of e-commerce.
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