MercadoLibre (MELI) Stock

Shares of Latin American e-commerce and fintech behemoth MercadoLibre (MELI 1.87%) are up over 6,560% since the company's initial public offering (IPO) in 2007. Had an investor bought $15,000 worth of MercadoLibre stock at its IPO, it would now be worth $1 million -- less than two decades later.

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MercadoLibre NASDAQ: MELI, a leading e-commerce and fintech platform in Latin America, just saw its stock plummet 23% following the release of its Q3 2024 earnings report, leading to concerns about the company's future. While the news might seem discouraging at first glance, some investors, including the renowned Cathie Wood of ARK Invest, have taken advantage of the dip, suggesting a potential buying opportunity for those seeking long-term exposure to the burgeoning Latin American market.

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Shares of the Latin American e-commerce leader just suffered a big post-earnings drop.

The e-commerce company's heavy spending won't last forever, but the growth it produces will.

In 3Q24, net revenue grew 4.7% q/q and 35% y/y. However, operating margins were impacted by investments in credit and logistics. MercadoLibre continues to expand its competitive advantages, including credit and logistics operations (five new distribution centers in Brazil and one in Mexico). With a PEG of 1.76x, close to two-year lows, the valuation indicates a buying opportunity despite the elevated price compared to the sector.

Investors could not find any enthusiasm in the company's latest reported figures.

MELI stock dips 11.6% post-Q3 despite solid growth. Heavy investments pressure margins.