LatAm List – What Wall Street expected would be a 13 cent loss turned out to be a 13 cent gain on MercadoLibre stock last Friday. This growth marked a record high for MELI stock and signaled its best revenue growth in eight quarters.
While experts had estimated the e-commerce platform’s revenue to reach $423M, MELI revenue hit $473.8M, smashing through investors’ expectations. MercadoLibre, Latin America’s largest e-commerce provider, was added to the IDB’s leader board after their stock price jumped 20% on Friday.
PayPal made a $750M strategic investment in MercadoLibre in March 2019 as a part of an offering that raised an additional $2B for the platform.
“We believe MercadoLibre is one of the most innovative companies in our coverage, and is a leading disrupter of e-commerce, fintech/payments, and logistics within Latin America,” wrote KeyBanc Capital Markets analyst Edward Yruma, in a note to clients.
MercadoLibre’s record-breaking stock pricing is just another indication of Latin America’s tech ecosystem taking off – especially after the Rappi – Softbank announcement last week.
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