Finally I 1. had enough cash and 2. Meli was once again pulled down by Mister Market at the beginning of October without any reason, so I was finally able to get my first Meli share. I've been waiting to get in since December 2024.
Briefly on the important things like figures etc.:
- Multiple Contraction is pretty massive at Mercado Libre, since the last highs in 2021 the stock has now made a whopping +12%
- In the meantime:
- Sales +617%
- EPS +1400%
- P/E ratio has fallen from 700+ to now approx. 37
- Future sales growth is expected to be 50% this year, then 33% and 20-25% over the next 5 years
- Margin should also increase from just under 8% to 15-16%, which will have a very positive impact on EPS and share price
- Strategically, Meli is well positioned, especially its e-commerce business continues to grow rapidly, also driven by the physical moat of the growing number of logistics centers in Latin America
- Financial Services with Mercado Pago grow 39% (dollar-adjusted!)
I would love to buy more $MELI (+2,56%) but I have to put something aside for a move :/
