18 September 2020

MercadoLibre

We have all heard of eBay and PayPal. eBay used to own PayPal before spinning it off as its own entity in 2015.

by John Royden

Head of Research

Group 10Created with Sketch.
Price
$1209.26
Group 11Created with Sketch.
52 Week High-Low
$1270.00—$422.22
Page 1Created with Sketch.
Net Yield
0.00
Group 12Created with Sketch.
Hist / Pros Per
-342—1,943.76
Page 1Created with Sketch.
Equity Market Cap
$51,693

The South American equivalent of eBay-before-it-spun-off-PayPal is MercadoLibre.

To me the two companies look similar. MercadoLibre runs on-line auctions as well as fixed priced sales and MercadoLibre runs its own payments system called MercadoPago. In contrast to eBay, you can ask their MercadoEnvios division to run your fulfilment as well. And if you really fancy yourself as an on-line trader then MercadoShops helps you build your own online shop. 

Whilst MercadoLibre has enjoyed sales growth of close to 30% per annum, you could be forgiven for thinking that it is being run as a not-for-profit organisation. True to a point, until you realise that MercadoLibre is in land grab mode and that when they start turning their income margin back up to the 35% level of the past, the share price looks more than fair unless international competition wins their market over. Their shares are traded on NASDAQ in America so they are closer to home than you might imagine.

Managing your wealth

Managing your wealth


Also in this issue

Capital Gains Tax (CGT) is a wide ranging and complex tax that in broad terms is levied on the increased value of certain possessions over the time that they have been held by their owner and is…

Edwards Lifesciences’ roots date to 1958, when Miles Edwards set out to build the first artificial heart.

Pearson supplies courseware to students globally.

Autumn Issue Thirty Two