Down 40%, Is It Time To Buy MercadoLibre?
MercadoLibre (NASDAQ: MELI) has been a top stock throughout its history as it's built Latin America's largest e-commerce and digital payments business.
However, more recently, the company has come under pressure. The stock has fallen as it has faced intensifying competitive pressure from Amazon and Sea Limited's Shopee, and at the same time, its profit margins are falling as it spends on infrastructure. That includes the expansion of its logistics network and credit business in part to fend off that competition. That also includes lowering the free shipping threshold in Brazil, its core market.
So is the sell-off justified, or is MercadoLibre just in the middle of an investment cycle that will pay off? Let's take a look at where MercadoLibre stands after its latest report.
Source Fool.com
Mercadolibre Inc Stock
The stock is an absolute favorite of our community with 41 Buy predictions and no Sell predictions.
With a target price of 2329 € there is a hugely positive potential of 60.27% for Mercadolibre Inc compared to the current price of 1453.2 €.
