This Latin American e-commerce company beat analysts’ estimates by $0.11 last quarter.
MercadoLibre, Inc. (MELI)
From The Chartist
MercadoLibre holds down the #14 spot in the relative strength rating. It has been in a strong uptrend rising 232% from its April 1, closing low at 447.34 to its all-time high on November 6 at 1,485.86. Since then it has come under some selling pressure, declining 13%. The pullback occurred as the promise of an effective Covid-19 vaccine caused the rotation from the market leaders, which have been heavily techs, to more cyclical issues. It is 12% off its 52-week high. The stock, however, remains comfortably above its up trending 50and 200day lines.
The company operates the largest online and payments ecosystem in Latin America with approximately 174.2 million users, it is the region’s most popular e-commerce site. The company integrates across several services including the MercadoLibre Marketplace, payments solution, advertising, and shipping.
Third-quarter earnings blew past estimates. Net revenue surged 85% year-over-year to $1.12 billion. Net income rose to $15 million or $0.28 per share versus a loss of $0.97 in the year ago quarter. The consensus estimates were for revenue of $972 million and earnings of $0.17. Unique active users jumped 92.2% to a total of 76.1 million, while gross merchandise volume (GMV) rose to $5.9 billion on an increase of 62.1% in U.S. dollars and 117.1% in local currency.
Dan Sullivan, The Chartist, thechartist.com, 900-942-4278, November 12, 2020