📈 MercadoLibre Outpaces Amazon in 2024
MercadoLibre, the Argentinian e-commerce and payments platform, has surged 34% in 2024, outpacing Amazon’s 27% rise. The company, founded in 1999 by Marcos Galperin, now dominates online sales in Brazil, Argentina, Mexico, and other Latin American countries. This success has drawn the attention of Wall Street, where 90% of analysts have rated the stock as a “buy,” with an average price target of $2,268.
💡 Growing Opportunity in Latin America
Galperin notes that Latin America’s e-commerce penetration remains low compared to the U.S. and Europe. "It’s an enormous opportunity,” he says. MercadoLibre controls roughly half of South America's online sales and operates a payments platform called Mercado Pago. With 600M mobile-savvy users in the region, e-commerce and digital payments are growing fast, creating room for MercadoLibre to keep expanding.
🏅 Strong Financial Performance
MercadoLibre’s financial performance in 2024 has been impressive. In Q2 alone, the company grew revenue by 42%, while revenue on a currency-neutral basis rose 112%. Operating profit margins hit 14.3%, highlighting the company’s strong profitability. CEO Marcos Galperin has successfully guided the company from a dot-com startup to a Latin American powerhouse, handling competition from global giants like Amazon.
💬 Investor Confidence and AI Potential
Wall Street analysts and investors are bullish on MercadoLibre. Brad Gerstner of Altimeter Capital is optimistic about the company’s potential, particularly in AI. He sees MercadoLibre expanding its profit margins and enhancing customer experience. "It’s not only margin expansion but reacceleration at the top," Gerstner said, adding that AI can help acquire customers and improve their buying experience.
How can MercadoLibre maintain its edge over Amazon?
