Mercado Libre: The Latin American E-Commerce Giant's Growth Story Is Just Starting

investing.com:

Mercado Libre (NASDAQ:MELI), a renowned name in Latin American e-commerce and financial services, has not only gained global recognition but also fiercely competes with industry giants like Amazon (NASDAQ:AMZN) and Alibaba (NYSE:BABA).

Founded in Argentina in 1999, the company's meteoric rise was aided by the lockdowns during the pandemic. Its Nasdaq-listed stock surged from approximately $700 in February 2020 to over $1420 presently, peaking above $1900 in 2021.

Source: InvestingPro

In Brazil, its BDR (Brazilian Depositary Receipt) is valued at R$58.25 and has touched nearly R$90 at its peak. With reduced expectations of a recession in the US and Europe for 2024, the commerce and retail sector is expected to gain momentum.

Leveraging InvestingPro's tools, we delve into whether Mercado Libre's stocks present a risk or opportunity for investors at this juncture.

While the e-commerce sector was already robust before 2019, the pandemic supercharged its growth. Companies like Amazon and Alibaba have become integral to many people's lives, just like Mercado Libre, particularly within its Latin American sphere of influence. With over 40 million active users across 18 countries, Mercado Libre has diversified far beyond traditional e-commerce.

One of its key offerings beyond the marketplace is Mercado Pago. This venture into the payments sector has transformed Mercado Libre into a full-fledged fintech company with its own digital bank, credit card services, and traditional payment terminals catering to businesses of all sizes. The company also excels in logistics, aiming for swifter deliveries compared to its rivals, even establishing new distribution centers to facilitate same-day deliveries in major urban areas.

In addition